The news comes after EE announces a company-wide shift in its UK market strategy last month
musicMagpie announced this week that it has entered into initial talks with BT and investment group Aurelius regarding its sale.
The online retailer of used electronics (smartphones, tablets etc), noted that discussions are at a “very early stage” although offer discussions are ongoing.
In a “response to speculation regarding a possible offer” on the London Stock Exchange, the statement said that “Accordingly, there can be no certainty that any offer for the Company will be made from either of the Parties, nor as to the terms of any such offer. Accordingly, shareholders are advised to take no action at this time. A further announcement will be made as appropriate.” The notice adds that the announcement has been made without the consent of both BT and Aurelius.
According to the Telegraph, the talks come as BT seeks to expand the presence of its customer division EE, in the market for second hand smartphones. Last month, EE revealed its entrance into a new era: New EE, allowing the brand to go beyond connectivity by launching an app which provides services such as e-commerce and entertainment.
“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,” said EE CEO Marc Allera.
“Consumer behavioural 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 became a public company in 2021, listed on the London Stock Exchange. At that time, it had a valuation if £200 million, which has since collapsed to just £20 million.
The offer window had been opened by musicMagpie, with both BT and Aurelius given until 18 December to announce a decision on the bid.
Shares in musicMagpie rose by as third after the announcement. Neither BT or musicMagpie have commented on the announcement.
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