Search and compare Media and Public Relations firms to publicize your business and enhance its reputation.
Welcome Guest | Sign In

Stock Watch: CDNow Sinks as Buyers Turn Scarce

By Nora Macaluso
Jun 15, 2000 12:00 AM PT

CDNow (Nasdaq: CDNW) was down 31/32 at 3 5/16 Wednesday after the company warned that it might not find a buyer or investor by the end of the month, and that any prospective offer might be at a below-market price.

Stock Watch: CDNow Sinks as Buyers Turn Scarce

The company also announced that Patrick Kerins, a managing director of Grotech Capital Group and one of CDNow's original investors, resigned from the board because of other commitments. President Jason Olim said the company is looking for a replacement.

Earlier this month, CDNow said it expected to find a buyer or partner by the end of June, indicating that it was in talks with a number of companies after receiving more than two dozen expressions of interest. Those talks are continuing, the company said late Wednesday.

CDNow began the search for a buyer in March, as it slashed costs to keep pace with expenses after a planned merger with Sony Corp. and Time Warner Inc.'s Columbia House fell through. The company lost 17 cents per share in the fourth quarter, compared with a 9 cent loss a year earlier.

Despite its troubles, CDNow saw 4.7 million unique users in the three months ended in April, up 6.3 percent from the preceding period. Earlier this week, the company announced a marketing alliance with Time, Inc.

Facebook Twitter LinkedIn Google+ RSS
If the FAA approved the use of autonomous drones as passenger "air taxis" for short commutes, how interested would you be in riding in them?
Very -- too much of my life is wasted in clogged traffic.
Not interested -- even if they were safe, they would be ridiculously expensive.
I'm looking forward to them -- smart machines will save human lives.
I'm skeptical -- but if they proved reasonably safe, I'd get on board.
I'd use them -- human pilots could take over remotely if necessary.
No way -- I would want a human on board to take over in an emergency.