Liquid Audio Inc., an Internet music distributor, said it agreed to buy closely held Alliance Entertainment Corp., a distributor of video games, DVDs and compact discs, for about $118.3 million in stock.
Alliance is controlled by AEC Associates, a unit of Los Angeles investment firm Yucaipa Cos. The company filed for Chapter 11 bankruptcy protection in July 1997. Liquid Audio said it will pay Alliance shareholders 46.2 million newly issued Liquid Audio shares. Alliance holders would own 67% of the combined company.