Musicland Ponders Possible Merger
Dec. 07, 2000
MINNETONKA, Minn. (AP) _ Musicland Stores Corp., owner of music and video retailers, confirmed Wednesday it is in talks with an unidentified third party ``regarding a possible business combination.''
The company did not elaborate and said in a statement that it would have no further comment.
The announcement came amid a surge in the company's stock price. Shares were up 28 percent for the day to close at a 52-week high of $10.25 on the New York Stock Exchange, after a brief halt in trading.
Musicland stock had traded in the $6 range as recently as last Thursday.
Along with other retailers, Musicland has seen sales stall recently. In November, the company reported that sales at stores open longer than a year were off 3 percent.
The company operates more than 1,300 stores across the country, including Sam Goody, Media Play and On Cue outlets.