The takeover deal was secured following previously interested buyers pulling out
AO World, the company that owns AO.com has agreed to purchase the buying and selling platform for around £10 million.
The company will pay 9.07p a share in cash for the business that buys and sells used mobile phones, consoles, books, CDs, DVDs and games.
Last year, there was a suggestion that BT and private equity firm Aurelius Group were interested in buying, but both pulled out of the talks back in November. MusicMagpie has made no secret of the fact that is was still available for sale though.
AO will be purchasing the business to bolster their trade-in and refurbished tech categories and services – two fast-growing market segments that have become vital parts of most consumer electronic retailers’ propositions as they look to lure customers back to upgrade their tech, or to help them save money by choosing refurbished products instead of new.
The news follows yesterday’s announcement from eBay that they would no longer be charging fees to consumers to sell on its platform, citing that consumers that sell are more likely to also buy from the same place. AO will no doubt be considering that little nugget of information as they venture further into buying back consumer’s technology from them to then resell.
AO World’s founder and head honcho John Roberts said “To achieve our strategic ambition of becoming the destination for electricals, it is crucial for AO to enhance its consumer tech offering.”
“MusicMagpie’s commitment to customer satisfaction and its exceptional brand are closely aligned with our values, and our shared cultures create a strong foundation for collaboration,” he added.
MusicMagpie, chief executive and co-founder Steve Oliver, said: “I am very proud of the musicMagpie business and the trusted brand that we have created, providing consumers with a smart, sustainable and trusted way to buy, rent and sell refurbished consumer technology and physical media products.
“We welcome the opportunity to join the AO Group and believe it represents a natural custodian for musicMagpie as part of the next stage of the business’s development.”
The sale to AO World is expected to complete during January-March 2025.
MusicMagpie launched in 2007, initially buying and selling preowned CD’s, but soon expanded into mobile phones, DVDs, books, games and even fashion. The brand also launched a mobile phone rental service, allowing consumers to rent a phone monthly rather than buy it outright.
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