Liquid Audio, Alliance drop merger plan

Liquid Audio Inc. and Alliance Entertainment Corp. have decided to scrap their merger plans following stockholders' public opposition to the move.

In a statement released Monday, the companies said that the termination of the merger agreement announced last June was "in the best interest of both parties."

The teaming of Liquid, a provider of software and services for digital media delivery, and Alliance, which offers real-world home entertainment distribution, would have created a major online and offline media delivery firm.

However, the companies said that a "significant percentage" of Liquid's stockholders opposed the merger.

No one from either company was immediately available to comment on the rupture Monday.

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