Last Thursday March 24th, 2011, Toronto based Mood Media announced it has entered into a definitive agreement to acquire Muzak Holdings LLC (“Muzak”), a privately-held company based in Fort Mill SC, for 345 million.
Muzak, which started in 1934 playing phonograph records for hotels and restaurants, currently delivers its product to subscribers over satellite radio. Muzak relocated to Fort Mill SC in 2000 from Seattle. The company filed for chapter 11 bankruptcy protection in February 2009 and then successfully emerged from bankruptcy last year after restructuring its debt.
Mood Media uses an Internet-based delivery system and operates an international in-store media and music retail business with an extensive geographic footprint and a broad client base including several multinational blue chip organizations.
So will Mood Media shut down the Fort Mill Headquarters after the acquisition is estimated to be approved in the 2nd quarter? Lorne Abony, CEO & Chairman of Mood Media Corporation, said:
“Over the past five years, Mood Media has transformed the in-store media industry by offering unparalleled innovation and convenience to our customers across the world. We now have the opportunity to extend this legacy to a world-recognized brand and create a truly global leader with U.S. headquarters in the Charlotte area.”
The Mood Media Press Release further said:
“Mood Media intends to maintain a significant presence in the Charlotte, North Carolina area, with its U.S. headquarters in Fort Mill, South Carolina.”
The comments seem to be positive for Fort Mill based Muzak employees. Time will tell how many jobs will actually remain in Fort Mill after the acquisition transition.