CDNow, Inc. (Nasdaq: CDNW) almost doubled Friday, gaining 2 9/16 to close at 4 7/8 after the cash-strapped online music seller said it expects to find a buyer or partner by the end of the month.
The Fort Washington, Pennsylvania-based e-tailer said more than two dozen companies expressed interest in buying or investing in the company. Management is meeting with those on a “short list” of potential partners, CDNow said.
CDNow began the search for a buyer in March, as it slashed costs to keep pace with expenses after a planned merger with Columbia House fell through. The company lost 17 cents a share in the fourth quarter, compared with a 9-cent loss a year earlier.
Despite its troubles and the scaled-down spending, CDNow said it averaged 4.7 million unique users in the three months ended in April, up 6.3 percent from the preceding period.