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CDNow nears cash infusion
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June 2, 2000: 2:28 p.m. ET
Beleaguered online retailer to disclose merger or investment deal by month's end
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NEW YORK (CNNfn) - Cash-starved online music retailer CDNow expects to complete its four-month search for a merger partner or major investor by the end of June, the company said Friday.
CDNow President and CEO Jason Olim said the company has narrowed down a list of possible investors and merger partners from the more than two dozen companies that initially expressed interest.
The Ft. Washington, Pa.-based company has been seeking a merger or financial partner since March when Time Warner Inc., the parent company of CNNfn, and Sony Corp. scrapped plans to merge their jointly-owned Columbia House music venture with CDNow.
 Time Warner and Sony instead invested $51 million in the company, but investors still have hammered the company's stock out of fears about CDNow's financial stability. In late March, CDNow said it had about $40 million in the bank and sufficient funds to meet its payment obligations until about Sept. 30.
During the first quarter, ended March 31, CDNow lost $28.2 million, or 92 cents per share, excluding one-time charges, a wider loss than analysts expected.
CDNow (CDNW: Research, Estimates) shares rose with the rest of the technology market Friday, climbing 1-11/16 to 4 in mid-afternoon trading. 
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CDNOW
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