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CDNow backs off deadline
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June 5, 2000: 12:20 p.m. ET
Online music retailer now says June 30 merger or investment not a sure thing
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NEW YORK (CNNfn) - Troubled online music retailer CDNow Monday backed off statements it made late last week promising to close a merger or major investment transaction by the end of this month.
The Ft. Washington, Pa.-based company said while it currently is negotiating with five groups, it cannot guarantee any of those discussions will be consummated by the end of June, although it has requested final proposals be submitted in time to meet that deadline.
Last Friday, cash-strapped CDNow (CDNW: Research, Estimates) issued a release saying it expected to wrap up either a merger or major investment by June 30, causing its stock to nearly double to 4-15/16 on higher-than-normal volume.
The heightened stock activity forced company officials to soften their statements Monday, saying "there can be no assurance that proposals will be submitted, or that a transaction will be consummated prior to June 30, or at any time."
CDNow's stock gave back some its Friday gains on the news, falling 3/4 to 4-1/8 in late morning trading Monday.
The company said it has not yet discussed specific price levels for an investment or acquisition. The company has been seeking a merger or financial partner since March when Time Warner Inc. (TWX: Research, Estimates), the parent company of CNNfn, and Sony Corp. scrapped plans to merge their jointly-owned Columbia House music venture with CDNow. 
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CDNow
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