Monday, January 30, 2006

SOME OTHER MASTER'S VOICE?

The scrappy performance of HMV over Christmas hasn't, it seems, put off people's dreams of owning a record shop (albeit a chain of shops with rather fewer records than other bits and bobs): HMV is facing a takeover approach, apparently from a private equity firm:

"Our initial reaction is one of scepticism that a deal could be completed at these levels," Steve Davies, of Numis Securities, told Reuters.

"We have talked on numerous occasions about the competitive pressures HMV is facing right now, and which are only going to get worse over time.

"From a private equity viewpoint, the biggest hurdle is who they are going to sell the business to in two or three years time in order to generate their required returns."


Of course, HMV might be worth more for what it has (a range of city-centre stores) than what it does (flogging DVDs and stuff like that.)

Gennaro Castaldo has had nothing to say.


1 comment:

Anonymous said...

> Gennaro Castaldo has had nothing to say.

That's a first! He was all over the radio and papers last week about the Arctic Monkeys, as well! Maybe he strained his larynx then...

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