CDNow Still Needs White Knight
CDnow says it's still seeking and investment or merger partner and that there's no assurance it will receive an offer by June 30, the date it previously gave for announcing such an agreement. The online music store, struck by a series of events that have caused its stock price to plummet, has been searching for a new partner since its merger with Columbia House was called off earlier this year. Since then, CDnow has announced a massive cost-cutting campaign to slash its spending by $12 million per quarter and slow the rate it is burning through cash.
The company also announced today that Patrick Kerins has resigned from the online music store's board of directors. Kerins, a managing director of Grotech Capital Group, was one of the original investors in CDnow and has been on the board since 1997. Kerins, who disposed of his interest in CDnow prior to joining the board, says he resigned to focus on the boards of companies in which Grotech has significant investments.
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