Lehman Brothers Collection - Contemporary Business Archives

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Lehman Brothers Collection

Twentieth-Century Business Archives

MCA Inc. Deal - Lehman Brothers Collection

MCA Inc.

Company Dealexchange of shares of convertible preferred stock and common stock for capital stock of Decca Records, Inc.
Transaction TypeExchange Offer
Deal DescriptionIn this deal, MCA Inc. offered to the stockholders of Decca Records Inc. one share of MCA convertible preferred stock, plus 1/3 of a share of MCA common stock, in exchange for each share of capital stock of Decca held by them. The exchange transaction presented the opportunity for the manpower of MCA and Decca, including Decca's subsidiaries, to coordinate their activities in related but separate segments of the entertainment industry. The management of MCA anticipated that the material economies that would result from the exchange transaction would more than balance the results of the termination of MCA's artist representation activities. It was intended to achieve such economies through coordinating the employment and use of the manpower and facilities of each corporation to create, develop, produce, and distribute television and motion pictures and other material in the entertainment industry. MCA anticipated that such coordination of the functions of MCA and Decca, and Decca's subsidiaries, would materially strengthen and increase the production and distribution activities of both corporations.
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