Bertelsmann to buy CDNow for $117 million
Web shakeout a gogo
Posted in Business, 20th July 2000 13:41 GMT
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Hard-up Web music retailer CD Now has been snapped up by German media giant Bertelsmann for $117 million.
CD Now will become a wholly owned subsidiary of Bertelsmann's e-commerce group, and will keep trading under its existing name.
CD Now has succumbed to the German giant's offer at a time when its tough for dotcom's to get funding - and it was desperate for money. Last month heavyweight business mag Barron's estimated it had a month left to live without another warm cash injection. Quite a good estimate as it happens. To save cash CD Now recently closed its London office.
Bertelsmann is offering $3 for CD Now's shares plus $42 million for the music e-tailer to pay off loans and bankroll its business until the deal is completed.
CD Now founders Jason and Matthew Olim have agreed to sell their 5.8 million shares which represents 17 per cent of outstanding shares. ®
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