Mood Media Sells Canadian Account Portfolio to Stingray Digital
TORONTO, Ontario, June 27, 2014 – Mood Media Corporation (ISIN: CA61534J1057) (TSX: MM) (LSE AIM: MM) (“Mood Media” or the “Company”) today announced an agreement to sell its remaining eight thousand Canadian commercial accounts to its long-term affiliate and operating partner, Stingray Digital (“Stingray”), for US$11.2 million. Stingray and Mood Media will continue to work together to serve the accounts with Mood Media services. The transaction further advances Mood Media’s strategy to simplify its portfolio, aggressively integrate strategic assets, strengthen partnerships and streamline operations, while investing in its core businesses.
Under the terms of the agreement, Mood Media will receive an initial cash payment of US$9.5 million and upon the achievement of certain key performance indicators, Stingray will pay Mood Media US$1.7 million via an incremental payment after 12 months. Proceeds from the transaction will be targeted to strengthen the Company’s balance sheet and deleverage even as it continues to invest in solutions that support growth.
“We continue to aggressively evaluate opportunities to simplify our portfolio, more effectively utilize Mood’s operating infrastructure and invest in resources to deepen relationships with clients - activities that we believe will create enhanced value for our stakeholders,” said Steve Richards, President and Chief Executive Officer of Mood Media. “Through this transaction we will monetize former DMX Canadian accounts that are not core to our current geographic growth strategy as they are located in territories served by Stingray, and therefore highly desirable to our valued long-term partner. This is another important milestone for Mood Media and it underscores our commitment to unlocking the value of our assets and capitalizing on new opportunities to enhance returns for all of our stakeholders.”
About Stingray Digital Group
Stingray Digital is the leading multi-platform music service provider in the world, with more than 100 million subscribers in 113 countries around the world. Geared towards individuals and businesses alike, the company’s commercial entities include leading digital music and video services Galaxie, Music Choice International, Concert TV and The KARAOKE Channel. The company also offers various business solutions, including sensory marketing solutions via its Stingray360 division and music licensing services through Stingray Music.
Majority-owned by Telesystem, Novacap and Boyko Investment Corporation, Stingray Digital is headquartered in Montreal and has over 200 employees in offices across Canada, as well as additional offices in Los Angeles, Miami, London, Amsterdam and Tel Aviv. The company stood out by ranking in the top 2014 Profit 500, Canada’s fastest growing companies. For more information, please visit www.stingraydigital.com.
Posted: Friday, June 27, 2014