Shareholders of Artistdirect approved a 1-for-10 reverse stock split in an effort to maintain the online music company's listing on the Nasdaq Stock Market. After the stock split, which will take effect Thursday, the company will have 3.6 million shares outstanding. Based on the company's share price of 69 cents at the close of regular trading Monday, the split share price should open at $6.90 Friday. Designed to artificially boost the price of a stock, reverse stock splits often fail to deliver long-term results, however.
Los Angeles-based Artistdirect also said Monday that its shareholders approved the appointment of entertainment industry executive Ted Field as chairman and CEO. The company will form a new record label in partnership with Field under the Artistdirect name.