In recent news, musicMagpie, an online retailer noted for selling used electronic gadgets, has confirmed the initiation of preliminary negotiations with BT and investment firm, Aurelius. However, the discussions are still in their infancy, yet the talks regarding a possible sale are ongoing.
The company issued a statement on the London Stock Exchange reacting to speculations about a potential offer for the firm. The announcement, however, was clear that no definitive assurance could be provided at this point as to whether either party would make an offer, let alone the conditions under which that offer might be made. Accordingly, shareholders have been advised to refrain from action until further notice. It is worth noting that the announcement was made without the consent of either BT or Aurelius.
This development comes in the wake of BT’s efforts to enhance the reach of its EE customer division in the market for pre-owned smartphones. In a significant development last month, EE, a BT subdivision, ventured into a fresh era labelled the “New EE”. Through this initiative, EE aims to transcend mere connectivity by launching an app that offers services ranging from e-commerce to entertainment.
Marc Allera, CEO of EE, expressed his enthusiasm over this development, saying, “With an EE ID, customers nationwide will be able to access a wide range of exciting new products, services and experiences across new sectors – easily and conveniently, in one place.” He further added, “Consumer behavioral patterns have changed, and it is about time telcos evolve. This latest revolutionary move represents a radical and fundamental shift in thinking and approach in the way a telco operates. In essence, the new EE aspires to be more – a broader tech and services retailer underpinned by connectivity.”
musicMagpie, launched as a public company last year, has had its valuation drop from £200 million to a mere £20 million. However, with the announcement of potential sale talks, the company’s share prices have risen by a third. The ball is now in the court of BT and Aurelius, who have until December 18 to decide on the possible bid.