Liquid Audio awaits vote results
The online music company says it plans to announce next week the results of a closely watched shareholder vote that could decide its future.
Key issues on the table at Thursday's annual meeting included management's proposal to accept a buyout offer from Alliance Entertainment, a privately held retail music fulfillment company. That plan is opposed by a group of dissident shareholders seeking to oust the current board of directors, shut the company down and return its remaining cash reserves to investors.
A Liquid Audio representative said the company does not plan to release a preliminary vote count. An announcement of the final tally is expected Oct. 4.
Shareholders opposing the merger include Steel Partners, which has made its own bids to buy Liquid Audio, and BCG Strategic Investors co-founder James Mitarotonda.
Liquid Audio has struggled for years to make money from its secure platform for delivering music downloads over the Internet, a plan complicated by the availability of free music over peer-to-peer and file-swapping services.
The company reported revenue of $151,000 for the second quarter of the year and a loss of $5.6 million. Its cash and cash equivalents at June 30, 2002 were $81 million, compared with $86.4 million at March 31 and $91.6 million at Dec. 31, 2001.