Shopping for Mama HMV's acquisition strengthens its live music interests

Published on Wednesday 23 December 2009 20:00

HMV has shored up its position in the growing live music market after agreeing a £46 million takeover of Mama Group, which owns the Edinburgh Picture House and the Warehouse in Aberdeen.

The move comes less than a year after HMV and Mama formed Mean Fiddler, a joint venture that owns 11 music venues and has an interest in events such as the Lovebox music festival in London.

The group also boasts an artist management business, which represents top bands including Kaiser Chiefs, Franz Ferdinand and White Lies.

HMV, which already owned 9.9 per cent of Mama, said it had support from investors representing almost 34 per cent of Mama's shares.

The deal trumps a previous 38m unsolicited approach from Mama's largest shareholder, Luxembourg-based investment firm SMS Finance.

HMV's move into the live music business forms part of the fightback plan engineered by chief executive Simon Fox in 2007, when the business was being hit badly by online music downloads. The company expects to open further venues to capitalise on the growing popularity of live music.