European media giant Bertelsmann intends to buy music e-tailer CDnow in an all-cash deal valued at $117 million. Bertelsmann's newly formed e-Commerce Group will oversee CDnow, which will become a wholly owned subsidiary of the company. CDnow will represent Bertelsmann in all music e-tailing across online, wireless and broadband, as well as digital music downloads and other emerging platforms. CDnow also will feature the content of GetMusic, a joint venture between Bertelsmann's BMG Entertainment and Universal Music Group. Cash-strapped CDnow had been soliciting buyers for the last few months. Its stock is trading at about $2 a share, down from a 52-week high of $22.63.
Copyright July 2000, Crain Communications Inc.