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Technology Stocks : CDNow (CDNW) -- Ignore unavailable to you. Want to Upgrade?

To: jjs_ynot who wrote (1376)	7/14/1999 8:05:00 AM
From: Barney Dunn	Read Replies (1) \| Respond to of 1465

CDNOW IN MUSIC PLAY By LISA BROWNLEE nypost.com If Gerald Levin of Time Warner Inc. and Sony Corp. chief Nobuyuki Idei are throwing elbows to stake a claim for their music businesses on the web, insiders at Internet retailer CDnow Inc. just got shoved..... .....The new company will use both Time Warner's and Sony's deep catalogs of artist content, videos and other promotional fanfare. The partners also plan to use the new company as a springboard to offering digitally downloadable music on the web - a business that media giants are racing to enter.... ...In a complicated transaction expected to be completed by the end of the year, shareholders of CDnow will get one share in the yet-to-be named company for every CDnow share they hold. Because the transaction creates a new stock, the deal gives the partners a public market currency to pursue other deals. It also essentially takes the Columbia House business public... ...CDnow shareholders are coming away with 26 percent of the new company, compared with 37 percent stakes for each Time Warner and Sony. Time Warner and Sony also are guaranteeing $450 million in bank credit for the new company... ...While Olim called the deal a "tremendous opportunity" for his investors, many of them headed for the exit on yesterday's news. In Nasdaq trading, CDnow shares slipped 115/16 to 211/8. ..