September 18, 2007

Richard Branson sells Virgin Megastores

Music retailing has been the backbone of Sir Richard Branson’s empire from the very first day that he started in the world of business, so it would be safe to say that he owes everything that he has done and all the money that he has made to this sector of the Virgin empire.

However the music retailing industry has changed a lot since those good old vinyl days. The introduction of music downloads over the internet and other forms of digital music means that the days of the mega store could be numbered. So maybe Sir Richard feels that by selling the business to a management buyout team is a seriously good move, and there are not many people who would argue against any of his business decisions.

The price battle for music CD’s has seen the cost of buying music drop considerably and so the stores have to look towards other markets that can produce a replacement income.

It will be interesting to see how the industry changes with the music mogul being in such a powerful position.

Source [Blogging Stocks]