Ailing music Netco Liquid Audio will soon be liquidated.
The board of the Redwood City, Calif.-based company unanimously approved a plan to dissolve the company and sell off its remaining assets, handing an apparent victory to a group of dissident shareholders who had scuttled an earlier merger attempt.
Under the new scheme, Liquid will on Dec. 20 pay out $2.50 per share in cash to stockholders of record as of Tuesday. Company will continue to operate while the board works through the details of the dissolution plan.
Last month, a shareholder rebellion led by MM Cos. (formerly MusicMaker) shot down a $100 million pact to merge Liquid with media distribution company Alliance Entertainment, arguing that Liquid’s assets should be distributed to shareholders.
Not long after the union’s untimely end, Liquid chief exec Gerald Kirby ankled the company.
Liquid’s shares moved up 5% on Friday to end the week’s trading at $2.78.