Alliance downloads Liquid Audio. (Headliners).(Liquid Audio Inc. is acquiring Alliance Entertainment Corp.)(Brief Article)(Statistical Data Included)

Video Business, June, 2002 by Frankel, Daniel

Alliance Entertainment strengthened itself in the online distribution arena last week when it entered into a merger agreement with Internet music company Liquid Audio.

The deal, valued at about $110 million, is what's known as a reverse merger: Technically, Liquid Audio is acquiring privately held Alliance, one of the largest independent distributors of DVDs, videogames and CDs (VB, 6-10). However, Alliance will end up controlling the newly combined company, putting six members on its board of directors as opposed to three for Liquid Audio.

Liquid Audio develops software for online music distribution companies such as Amazon.com.

The merger will allow Alliance, which distributes home entertainment software to a high-profile list of...

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