|Fate||Acquired by Bertelsmann, shut down|
CDnow, Inc. operated an online shopping website that sold compact discs and music-related products. In April 1998, during the dot-com bubble, the company was valued at over $1 billion; however, it was acquired by Bertelsmann Music Group in July 2000 for $117 million and later shut down. At its peak, it employed over 750 people and had offices in Fort Washington, Pennsylvania, New York City, London, and Los Angeles.
With 5 employees, the company moved near the Penllyn train station in Lower Gwynedd Township, Montgomery County, Pennsylvania and a couple years later it moved to the Strawbridge & Clothier building in Jenkintown, Pennsylvania.
In June 2000, the company closed its London office to cut costs.
In July 2000, Bertelsmann Music Group acquired the company for $117 million, a price that was down over 90% from the valuation of the company at its peak in April 1998. The 2 Olin brothers got a total of $17 million.
In April 2001, the company cut 40 employees, 10% of its staff.
In August 2001, the company shut its Japanese website and laid off 200 employees.
The CDnow Story: Rags to Riches on the Internet by Jason Olim and Matthew Olim
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