HMV in talks to sell 50-% stake in digital music company 7digital: report
17 October 2011
UK retailer, HMV Group Plc is in talks to sell its 50-per cent stake in digital music company 7digital, Sky News reported yesterday, citing unnamed people close to the company.
HMV, which had acquired the stake in 2009 for £7.7 million from its venture capital backers, Balderton Capital and Sutton Place Managers, is in talks with several prospective buyers, which are thought to be technology companies, Sky said. A deal is still ''some way off,'' it added.
HMV could reduce its stake without selling out entirely. It is likely to retain a relationship with the company anyway through its own digital downloading service.
7digital offers downloadable music, video and movies to customers in major European markets. It also provide branded digital solutions for their clients, including traditional media companies such as ITV and Channel Five, brands such as Pringles and Miller, and social networking sites
7digital's technology is used to power HMV's digital services, including an e-books store for its Waterstone's arm.