Digital Audio Provider MediaBay Closing Down Operations

The struggling audio book company MediaBay, once trying to compete on the digital side with Audible, is finally closing down, after trying and failing to find a buyer. It retained a banker in February last year, but nothing came out of it.

The company issued a terse statement: It has “been unsuccessful in its attempt to sell the company and has no viable alternative, except to cease operations and liquidate its assets. MediaBay intends to wind down its operations in an orderly manner and seek to sell its assets at auction and distribute its remaining cash to its creditors. It is anticipated that this process will conclude by early September 2007.”

The company, started 12 years ago as a audiobook cassette company, had distribution deals with MSN and RealNetworks, and at point was going to manage Larry King’s audio book club. It launched a consumer site SoundsGood in 2005, but that also went nowhere. Meanwhile, the company which traded on Nasdaq small caps market, was booted off, and ended up on Pink Sheets.

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