ARTISTDIRECT MAKES TENDER MOMENT LAST LONGER
To Get Rid Of Stock
The tender offer, in which the music-media company plans to purchase up to 2 million of the 37.8 million outstanding shares of its fizzled stock, was to expire yesterday, but ARTISTdirect chose to give itself 20 additional days to repurchase and shareholders 20 more days to lose the dead weight. No reason was offered for the extension.
The purchase will be made by "Dutch Auction," with an offering range between $1.25 to $1.50 per share. Shares are currently trading at 75 cents. If the number tendered is greater than the number sought, ARTISTdirect will buy within a range that allows it to repurchase the shares at the lowest aggregate price.
The company intends to cover the buyback with its current cash flow and the liquidation of short-term investments—along with the money staff members collected at the netco's recent carwash fundraiser.
