Gramophone Merger

Radio Record, Volume II, Issue 45, 24 May 1929, Page 4

Gramophone Merger

HM.V. and Marconi’s Right to Wireless Patents [t is announced that a merger agreement has been coneluded between the Gramophone Company, Limited (His Master’s Voice), and Mareoni’s Wireless Telegraph Company, Limited. By this agreement, says the "Morning Post,’ His Master’s Voice Com‘pany acquire the Marconiphone Company, "as well as the right to use present and future Marconi patents and inventions in all fields of public entertainment and edycation." It is stated that: "His Master’s Voice has also acquired: the exclusive right for these fields to the Marconi trade marks, including the trade marks ‘Marconi’ and ‘Marconiphone’ ahd cer-. tain factory facilities. The Marconi Company will receive cash and shares in H.M.V., théreby becoming interested in the prosperity of the combined gramophone and: wireless broadcasting industry." Jump in Shares. (GRAMOPHONE (H.M.V.) shares made a spurt on the London Stock Hxchange on rumours of the deal and suggestions of a pending scrip bonus and a. share-splitting scheme. The shares rose £1 7s. 6d. to £17 5-16 at the close. On March 1, they were quoted at £15. In spite of a somewhat severe reaction in New York, Radio Corpora: tion of America (New) and Victor Talking Machines provided outstanding features by rising eight dollars and ten dollars respectively. These two companies will shortly be combined as far as stock market quotations are concerned, and are intimately connected with H.M.V. Mr. Alfred Ciark, for instance, who is managing director of the Gramophone Company, is also on the board of the Victor Talking Machine Company of America.

Much buying of #Gramophones (H.M.V.) which has emanated from New York during the last few days has also been due to rimouis of scrip bonus and a share-splitting scheme. ‘ Gramophone Conipany, Ltd. was registered in 1900 as the Gramophone and Typewriter Company, Ltd., changing its name in 1907. The authorised capital is £1,700,000 in £1 shares, £100,000 in 5 pér cent. cum preference, and £1,600,000 ordinary shares. Previous Merger. [= must be remembered that the Radio Corporation of America took over the Victor Talking Machine Company some time ago and the merger is now an accomplished fact. These two American companies own half the shares of Gramophone (H.M.V.), the Hnglish company, but, when the new shares of the Gramophone Company are issued to the Marconiphone Company {.@ Américans Will no longer have a controlling interest. ; Mr. Walter Howarth Oopper, the secretary of Gramophone Company, stated ‘to the "Morning Post" that H.M.V. acquires not only the Marconiphohe Company, a subsidiary company of the Marconi Wireless Telegraph Company, whicl. has an authorised share capital of £4,000,000 (£2,270,133 paid up), but also the right to use present and future Marconi patents and inventions in all fields of public entertainment and edueation. This, he explained, includes gramophone amplifiers, ete. Mr. Cooper added that H.M.V. was also taking over the radio factories of the Sterling Telephone and BDlectri¢ Company. The Sterling Telephone and Hlectric ‘Company is controlled by Marconi ‘Wireless Telegrapli Company (under the directorship of Mr. F, G. Kellaway), Which has an aythorised share capital of £65,000.