Digital Music Shares Don't Do So Well In Market Debut
Digital Music Group, a rather uniquely named aggregator, saw
it's shares decline 14.3 percent in it's market debut on NASDAQ. The Sacramento, California-based company acquires
the rights to out-of-print recordings -- including tracks by Fats Domino and Herman's Hermits -- digitizes them and
sells them online through music Web sites, including the iTunes store of Apple Computer Inc. shares were trading at
$8.89, which is actually up from the low they saw at $8.36. It wasn't the $9.75 a share they were looking for, but the
company is still valued at $34 million at this writing, which isn't too shabby given the size of the company, and how
long it's been around.
Reader Comments
(Page 1)2. That sounds pretty yucky.
Posted at 5:52PM on Feb 3rd 2006 by Sharky Laguana
3. It shounds yucky Sharky however I confirm its true. These guys are slimeballs. Hopefully karma will come full circle. Shame, shame, shame.
Posted at 1:45AM on Feb 4th 2006 by 2 greeks and a geek
1. I tried to reach this company for weeks now. I finally received a call back from thier Sr. Network Engineer, Richard Johnston,today(said hes been out on a family emergency but does not plan to return to the company at this time).
I had some questions about thier process and how they store all of thier data. He told me that they had implemented a Dell/EMC SAN but that they were outgrowing it too fast and would not be able to sustain opeations at this rate.
He said he wasnt sure he cold comment on thier process but noted that thier lead developer was a pure all-star and as long as he was there, the process would continue to work well.
I then questioned him about a couple rumors I had heard about how the company handled thier stock option with the current emplyees. He declined to answer any questions about the supposed upside down loan that the company had offered them. He directed me to Anders Brown (Current COO of the company) for anything regarding the loan.
From what i understand, the shares promised the employees were rumored to cost each employee almost as much as 700% thier supposed price when offered to them initally. Some of the employees were offered to purchase these early shares before the price had gone up and the tax burden increased.
when I asked richard about this, he said,"thats the way it goes, when there is an increase in the value from the purchased price, there is a net gain. It is a income as far as I can see and it should be taxed". He would not coment about a supposed high interest loan or the fact that they were not given this information until the last minute. "You have to talk to the executive management about that, I do not feel I was mislead". He did say however, that he chose not to take his options and is taking time to care for his ailing father.
Im not sure if I would trust this company. It seems the management is semi-shady (in my opinion) and rumor has it that not only are they just looking to do a quick turn over on this venture, but that they (the board and investors) have done this before.
Posted at 8:56PM on Feb 2nd 2006 by But Serioulsy Folks