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CDnow eyeing N2K
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October 7, 1998: 12:48 p.m. ET
Online retailers in talks to create industry's largest music site
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NEW YORK (CNNfn) - CDnow Inc. and N2K Inc. confirmed Wednesday they are in merger talks, setting the stage for a deal that would create the largest online music retail site.
But both companies said no definite agreement had been reached as of yet and there were no guarantees a deal would be reached.
Earlier the Wall Street Journal reported that Jenkintown, Pa.-based CDnow plans to acquire N2K in a stock-swap deal that could completed within the next few weeks.
The companies reportedly will be consolidated under the CDnow name, which is considered the more recognizable brand.
The new company would claim more than 1 million customers and offer a variety of music-related services, with retailing at its core, the Journal said.
CDnow and New York-based N2K, which operates Music Boulevard, were pioneers in the online music market, but Amazon.com, which entered the online music market in June, has proven to be a strong competitor.
CDnow co-founders, 29-year-old twin brothers Jason and Matthew Olim, are reportedly expected to head up the new company.
Shares of CDnow (CDNW) closed up 7/16 at 7-15/16 on the Nasdaq Tuesday, while N2K (NTKI) stock fell 1/4 to 4-1/2. 
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