Alliance Mulling Merger Offer, Sources Say18 Nov, 2004 By: Erik Gruenwedel
Coral Springs, Fla.-based Alliance Entertainment Corp. remained in merger discussions with Source Interlink, a Bonita Springs-based fulfillment and marketing company, according to sources familiar with the situation.
Alliance, which reportedly distributes more than 265,000 music and video skews to both online retailers and brick-and-mortar stores including supermarkets, would combine with Interlink's customer base that includes Barnes & Noble, Borders, Musicland, Virgin Megastores, Target, Kroger, Food Lion, Walgreen's and Winn-Dixie.
In a related matter, Alliance parent Yucaipa Cos.' reported interest in acquiring Tower Records has apparently cooled, according to sources.
A Tower spokesperson declined comment; representatives from Alliance and Interlink were unavailable.