AO World Completes £10m Takeover of musicMagpie
Online electricals retailer AO World has finalised a takeover deal for musicMagpie in a transaction valued at approximately £10 million. As part of the agreement, AO World will acquire the Stockport-based business, known for trading refurbished electronics and second-hand computer games, consoles, books, films, and music.
The takeover by AO World follows the withdrawal of previous potential buyers, including BT and private equity firm Aurelius Group, in November last year. After being left on the sale block, musicMagpie has now sealed a deal with AO World.
AO World’s founder and CEO, John Roberts, emphasised the importance of incorporating a “top-tier trade-in service” into their offerings, highlighting the significance of enhancing the consumer tech segment to become a prominent player in the electricals market.
Roberts expressed that the values and culture of both companies align well, stating, “MusicMagpie’s commitment to customer satisfaction and its exceptional brand are closely aligned with our values, and our shared cultures create a strong foundation for collaboration.”
In response, Steve Oliver, chief executive and co-founder of musicMagpie, expressed pride in the company they have built, providing consumers with a reliable platform for buying, renting, and selling refurbished consumer technology and physical media products. Oliver welcomed the opportunity to join forces with AO Group for the next phase of musicMagpie’s evolution.
The deal between AO World and musicMagpie is anticipated to be finalised in the first quarter of the upcoming year. MusicMagpie, which went public in April 2021 valuing the company at over £200 million, has faced challenges in sales due to subdued consumer confidence amid the pandemic. Additionally, its US arm, Decluttr, has encountered difficulties expanding in the American market.
The shift towards streaming services has impacted musicMagpie’s core business of trading unwanted DVDs and disc media, while book sales have also dwindled. Established in 2007, the company originally focused on reselling second-hand CDs before diversifying into DVDs, books, and video games. Over time, musicMagpie expanded its services to include mobile phone and tech gadget recycling for resale.
Despite facing market challenges, the company remains optimistic about its future under the wing of AO World. The collaboration aims to leverage their respective strengths and foster growth in the evolving landscape of electricals and refurbished consumer technology.