CDNow Inc said Monday that the Federal Trade Commission (FTC) has issued an official request to Time Warner Inc and Sony Corp for more information on their proposed acquisition of the online music retailer. The deal, announced in July on undisclosed financial terms, will see the two media giants merge CDNow with their Columbia House subsidiary. Scrutiny of the merger will now be extended until 20 days after the FTC receives the information requested, although the parties involved declined to elaborate.
Time Warner and Sony have indicated that they remain committed to the merger and insist they are actively working to resolve issues related to the FTC’s request. CDNow said it still expects the deal to close in the first quarter of 2000. Upon completion, the two media giants will each own 37% of the new company, while existing CDNow stockholders will hold the remaining 26%.
