Liquid Audio Saga Plays On Tuesday, October 01, 2002, 2:37 PM ET

Liquid Audio, which last Thursday met with a group of shareholders seeking to liquidate the company’s cash assets, announced today that it has reached an agreement with Microsoft to sell the software giant the domestic and foreign rights to its patents. The company says the move is part of a shift in its “strategy in preparation for the merger with Alliance Entertainment.” That merger was the main point of contention in last week’s shareholder meeting. What’s more, the San Jose Mercury News reported last week that the activist investors had, in fact, gained enough votes to remove Liquid’s chairman and proceed with the liquidation of the company. The company won’t announce the vote totals until October 4, but seems to be proceeding with merger preparations notwithstanding.

For more, see the press release

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