Musicmagpie eyes sale of business as value plummets
The owners of Musicmagpie are in the early stages of exploring a sale of the business to both BT and Aurelius Group.
In an announcement this morning, the second-hand smartphone seller said that discussions between the parties are “ongoing and remain at a very early stage”.
The company’s share priced surged over 25 per cent this morning as markets responded to the news.
It follows speculation by The Telegraph that it was on the hunt for a buyer just two years after the business made its debut on the London market.
Musicmagpie said: “Accordingly, there can be no certainty that any offer for the company will be made from either of the Parties, nor as to the terms of any such offer.”
The technology firm has suffered financially in recent months, and its value has been downgraded from £200m to £20m in the last two years, according to reports in the outlet.
Musicmagpie also failed to break into the US market with sales in the region plummeting from £18.4m to £14.7m in the first half of 2023.
Postal strikes in the UK have also soured its earnings but its most recent interim results showed an uptick in underlying earnings, growing 42 per cent to £2m in the second quarter.
Speaking at the time, chief executive, Steve Oliver, said: “While we remain very mindful of the current tough consumer environment, the momentum in our business as we head into H2 means that we are confident of achieving our full-year expectations.”