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Mood Media considers options to up shareholder profit, including its sale

TORONTO – Mood Media Corp. (TSX:MM) said Thursday it’s considering strategic alternatives, including the possibility of selling the music service company.

The company said along with a possible sale, it’s also considering “enhancing the company’s existing strategic plan and a strategic combination with a third party.”

Mood Media has formed a committee of independent directors to review the options, and has also hired Credit Suisse Securities and Morgan Stanley as financial advisers.

The Toronto-based company, which creates visual, audio and scent systems to enhance the retail environment, said it was not currently in talks with any specific party about its sale.

“While undertaking this process, the board and senior management team remain highly focused on executing the company’s long-term operational plan, including among other initiatives the integration and realization of the strategic and financial benefits of the acquisitions completed over the past two years,” Mood Media said in a statement.

Last month, it reported its fourth-quarter revenue was up 51 per cent year over year as a result of acquisitions, growth in equipment sales and improved recurring revenue, but its loss almost quadrupled to $27.1 million.

Among Mood Media’s best-known acquisitions was Muzak Holdings LLC in May 2011, which provides music services to customers. Last year, Mood Media made several acquisitions including DMX Holdings, which provides multi-sensory branding services.