RADIO-MUSIC MERGER

Grey River Argus, 28 April 1932, Page 6

RADIO-MUSIC MERGER

MAJESTIC AND COLUMBIA PHONOGRAPHS. A recent issue of the “Talking Machine and Radio Weekly” records the acquisition of the Columbia Phonograph Coy by the Grigsby-Grunow Coy., makers of Majestic Radios. By the terms of au exchange of shares agreed upon a few days ago, the GrigsbyGrunow Coy.. Chicago, and the Columbia Phonograph Co., New York, have merged a joint statement being issued by B. J. Grigsby, President cf the Grigsby-Grunow Coy., IL C. Cox, President of the Columbia Phonograph Coy., Inc.. New York, outlining the project. It was stated that negotiations have been practically completed whereby the Grigsby-Grunow Company acquires control of Columbia Phonograph Co., Inc. Columbia owns valuable patents and trade-mark rights to the well-known Columbia name in North and South America and manufactures Columbia phonographs and records with a wide distribution of these products as well as radios and refrigerators. ' The Grigsby-Grunow Co. manufacture radios and refrigerators, and it is anticipated that a very substantial demand Will b e created for these products in all territories under the Columbia name, which will be of material benefit to both companies and give a substantial increase i n production to the GrigsbyGrunow Co. The voting trustees of Columbia Phonograph Co. Inc., a New York corporation, have entered into an agreement to sell to Grigsby-Grunow Co., an Illinois corporation. all the shares of Columbia Phonograph Co., Inc., deposited with them under a Voting T.ust Agreement created in June 1931. This will give practical control of Columbia in North and South America to the Grigsby-Grunow Co., the well-known Chicago manufacturer of Majestic radios and refrigerators, as over 78,000 shares, out of a total of 82,524 issued shares of Columbia Phonograph Co., Inc., have already been deposited with the voting trustees. Provision has been made for additional deposits. It is understood that prior to the sale of shares Columbia will d.str bute a capital dividend of 10 dollars per share. The Grigsby-Grunow-Co. will exchange approximately 4 4 10th shares of its stock for each share of Columbia. Therefore Columbia stockholders will receive 10 dollars cash and 4 4-lOths, shares of GrigsbyGrunow stock (less certain expenses of the Voting Trust) for each share of Columbia deposited with voting trustees. The Voting Trust was created by Columb a Gramophone Co.. Ltd., of England, formerly in control of Columbia Phonograph Co.. Inc., prior to the formation in June 1931. of the European Consolidation of radio and phono, graph interests under the name of Electrical and Musical Industries. There are consequently many European heders of Voting Trust Certificates of Columbia, about one-third being registered in London and two-thirds in New York. The merged company will have factories in Chicago. Bridgeport, Conn., and Los Angeles, and the operation of both the Majestic and Columbia business organisations continues w-ithout change. Columbia- controls valuable < patents and trade mark rights in NSrth and South America, and manufactures > Columbia phonographs, records, and, of late, dry cleaning machines with a wide d stlibution. The Company operates number of distributing branches which also carry radios and refrigerators. Majestic radios, tubes ami refrigerators are distributed in every section of this country and in most foreign countries. A joint statement by Messrs Grigsby and Cox said:—“lt is anticipated that a very substantial demand will bo created for these products in all territories under the Columbia name* which will be of material benefit conn, panics and give a substantial in production to the Grigsby-Grunow Co.” It is anticipated that the enlarged company will have a of around 100,900.000 annually. The Grigsby-Grunow Co. has e enjoyed* . spectacular growth. From sales of 5 861,000 dollars in 1928, it rapidly grew to a peak in 1930 of 61.330,000 dollars.