Coming off a string of disappointing recent quarters, Mood Media (TSX:MM) says it may sell the company.
In a press release this afternoon, the company said its board has formed a strategic review committee to review a range of options to enhance shareholder value, including the potential sale of the company. Mood Media has engaged engaged Credit Suisse and Morgan Stanley as financial advisers.
Late in March, the company reported its fiscal 2012 results. On the back of several recent acquisitions, the company’s topline keeps growing, but so are its losses. Mood Media lost $79.23-million on revenue of $443.8-million, up from a loss of $59.90-million and revenue of $274.7-million a year prior.
Byron Capital analyst Rob Goff, who cut his price target on Mood Media following the Q4 numbers, says he is concerned by the delay in Mood Media profitably transitioning its legacy audio business into customers on the video side.
Mood Media came to public attention when it completed the $345 million acquisition of Muzak, forming an entity that had $400 million in revenue in what is referred to as the sensory branding space, a term for multi-sensory marketing tactics now being used by giants such as Nissan, Pizza Hut and Starbucks. The company has inked deals with brands as diverse as Vitamin Shoppe, Hooter’s and the Puma store in Paris, where the company installed giant video walls.
Shares of Mood Media were halted today after market close, but ended the day up 4.2% to $.99.