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Shining a light on PE ownership.

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MU

Music Choice

media
PE-OWNED

Digital music television network providing commercial-free music channels and streaming services.

PE-OWNED

Acquired by Golden Gate Capital2016-07-01

View PE Firm Profile

What Made It Great

“

Multi-platform music distribution with cable TV and digital streaming presence

What PE Will Likely Do

Predictions

Significant reduction in Music Choice's editorial and creative staff, leading to a decline in the quality and variety of music programming and curation

HIGH LIKELIHOODBased on: Golden Gate Capital's track record of cost-cutting and debt loading in acquired companies, which often leads to a decline in product/service quality

Consolidation of Music Choice's content production and distribution across its cable TV and digital streaming platforms, resulting in less unique and differentiated content

HIGH LIKELIHOODBased on: The industry playbook for media companies acquired by private equity firms, which typically involves newsroom layoffs, content consolidation, paywall implementation, and reductions in print media

Implementation of a paywall or increased subscription requirements to access Music Choice's full suite of music channels and streaming services

HIGH LIKELIHOODBased on: The similar outcomes observed in past cases of private equity acquisitions in the retail and restaurant industries, where cost-cutting measures resulted in bankruptcy and market share erosion

Reduction or elimination of Music Choice's print program guides and other physical media, making it more difficult for customers to discover and access its music offerings

HIGH LIKELIHOODBased on: The similar outcomes observed in past cases of private equity acquisitions in the retail and restaurant industries, where cost-cutting measures resulted in bankruptcy and market share erosion

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Acquisition announced, promises of 'investment' in Music Choice's services; initial round of layoffs in editorial and creative teams

6-12 monthsYOU ARE HERE

“6 to 12 months months”

Further content consolidation, reduction in print program guides, and implementation of paywall or increased subscription requirements

12-24 months

“12 to 24 months months”

Noticeable decline in the quality and variety of Music Choice's music programming and curation, leading to increased customer complaints and dissatisfaction

Similar Cases

Other companies that followed a similar path after PE acquisition

Operating

Sports Illustrated

Authentic Brands Group·2019

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McClatchy Newspapers

Chatham Asset Management·2020

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Operating

Denver Post

Alden Global Capital·2018

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Chicago Tribune

Alden Global Capital·2021

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Baltimore Sun

Alden Global Capital·2021

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What You Can Do

Take Action

Actions

  • Closely monitor any changes in the quality, variety, and accessibility of Music Choice's music programming and streaming services

  • Consider alternative music streaming and discovery platforms that prioritize content quality and customer experience over cost-cutting measures

  • Voice concerns and feedback to Music Choice's customer service and management team to hold the company accountable for any declines in service

Alternatives

Research independent alternativesSAFE

Look for family-owned or employee-owned businesses

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"Music Choice is now PE-owned. Here's what that means for you."