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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
(Rule 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS
FILED PURSUANT TO RULE 13d(a) AND AMENDMENTS
THERETO FILED PURSUANT TO RULE 13(d)-2(a)
(Amendment No. 1)
CDnow, Inc.
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(Name of Issuer)
Common Stock, without par value
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(Title of Class of Securities)
125085100
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(CUSIP Number)
Teruhisa Tokunaka
Executive Deputy President and
Chief Financial Officer
Sony Corporation
6-7-35 Kitashinagawa
Shinagawa-ku, Tokyo 141-0001 Japan
81-3-5448-2111
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with copies to:
Morton A. Pierce, Esq. David H. Landau, Esq.
Dewey Ballantine LLP Rosenman & Colin LLP
1301 Avenue of the Americas 575 Madison Avenue
New York, New York 10019 New York, New York 10022
(212) 259-8000 (212) 940-8800
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(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
August 3, 2000
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(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of ss.ss. 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box. / /
NOTE: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Rule 240.13d-7(b) for other
parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting persons
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
(Continued on following pages)
Page 1 of 6
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CUSIP No. 125085100 Page 2 of 6
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Sony Music Entertainment Inc.
IRS No. 13-3431958
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) / /
(SEE INSTRUCTIONS)
(b) / /
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3 SEC Use Only
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4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
WC
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED / /
PURSUANT TO ITEMS 2(d) or (e)
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
1,202,750 See Item 3
NUMBER OF ------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY EACH ------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON 1,202,750 See Item 3
WITH ------------------------------------------------
10 SHARED DISPOSITIVE POWER
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,202,750
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (SEE INSTRUCTIONS) / /
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13 PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (11)
3.7%
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14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
CO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 2 f 6
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CUSIP No. 125085100 Page 3 of 6
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Sony Corporation
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) / /
(SEE INSTRUCTIONS)
(b) / /
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3 SEC Use Only
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4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
AF
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED / /
PURSUANT TO ITEMS 2(d) or 2(e)
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Japan
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7 SOLE VOTING POWER
1,202,750 See Item 3
NUMBER OF ------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY EACH ------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON 1,202,750 See Item 3
WITH ------------------------------------------------
10 SHARED DISPOSITIVE POWER
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,202,750
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (SEE INSTRUCTIONS) / /
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13 PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (11)
3.7%
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14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
CO
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Page 3 f 6
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CUSIP No. 125085100 Page 4 of 6
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Sony Corporation of America
IRS No. 13-1914734
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) / /
(SEE INSTRUCTIONS)
(b) / /
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3 SEC Use Only
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4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
AF
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or (e) / /
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
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7 SOLE VOTING POWER
1,202,750 See Item 3
NUMBER OF ------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY EACH ------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON 1,202,750 See Item 3
WITH ------------------------------------------------
10 SHARED DISPOSITIVE POWER
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,202,750
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES (SEE INSTRUCTIONS) / /
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13 PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (11)
3.7%
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14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
CO
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Page 4 f 6
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This Amendment No. 1 (this "Amendment") hereby amends and supplements the
Statement on Schedule 13D (the "Initial Statement") filed by each of Sony Music
Entertainment Inc. ("Sony Music "), Sony Corporation ("Sony Corp.") and Sony
Corporation of America ("SCA") (collectively, the "Reporting Persons"), relating
to the common stock (the "Common Stock") of CDnow, Inc. ("CDnow"). Capitalized
terms used herein but not defined herein have the meanings ascribed to them in
the Initial Statement.
Item 4. Purpose of Transaction
Item 4 of the Initial Statement is amended and restated in its entirety as
follows:
As of August 3, 2000, the Reporting Persons are the beneficial owners of
less than five percent of the outstanding CDnow Common Stock and therefore
intend to make no further filings pursuant to Rule 13d-1 promulgated under the
Securities Exchange Act of 1934, as amended until such time as any of the
Reporting Persons' ownership of the CDnow Common Stock rises to a level above
five percent of the outstanding CDnow Common Stock.
Item 5. Interest in Securities of the Issuer
Item 5 of the Initial Statement is amended and restated in its entirety as
follows:
On August 3, 2000, CDnow prepaid all amounts due and outstanding under a
convertible loan agreement (the "Convertible Loan Agreement"), between CDnow,
Sony Music and Time Warner Inc. ("Time Warner"). Under the Convertible Loan
Agreement, each of Sony Music and Time Warner, as lenders, had agreed to make
term loans to CDnow, as borrower, in an amount not to exceed the loan commitment
under the Convertible Loan Agreement. Each of Sony Music and Time Warner, at its
sole option, at any time and from time to time, had the right to convert (the
"Conversion Right") all outstanding loans made by it under the Convertible Loan
Agreement, and any accrued and unpaid interest on the loans, into shares of
CDnow Common Stock, at a conversion price of $10.00 per share (subject to
customary anti-dilution adjustments). At the time of the filing of the Initial
Statement on Schedule 13D, assuming that Sony Music had made loans to CDnow in
the full amount of its loan commitment, based on the conversion price, Sony
Music would have had the right, pursuant to the Conversion Right, to acquire
beneficial ownership of 1,500,000 shares of CDnow Common Stock. Sony Music's
Conversion Right terminated upon CDnow's repayment of Sony Music's loan under
the Convertible Loan Agreement. As a result Sony Music is no longer deemed to
beneficially own shares of CDnow Common Stock under the Convertible Loan
Agreement, and is no longer the beneficial owner of more than 5% of the
outstanding CDnow Common Stock.
Sony Music beneficially owns 1,202,750 shares of CDnow Common Stock,
representing less than 5% of the outstanding shares of CDnow Common Stock. Each
of Sony Corp. and SCA is deemed to beneficially own 1,202,750 shares of CDnow
Common Stock, representing less than 5% of the outstanding shares of CDnow
Common Stock, held by Sony Music. Sony Music has the power to vote, and the
power to dispose of 1,202,750 shares of CDnow Common Stock.
Except as described herein, none of the Reporting Persons, nor, to the
best knowledge of the Reporting Persons, any person listed in Annex A or Annex B
of the Initial Statement, as appropriate, beneficially owns, or has acquired or
disposed of, any shares of CDnow Common Stock during the past 60 days.
Page 5 of 6
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Signature
After reasonable inquiry and to the best of the undersigneds' knowledge
and belief, the undersigned certify that the information set forth in this
statement is true, complete and correct.
Date: August 4, 2000 SONY CORPORATION
By: /s/ T. Tokunaka
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Name: Teruhisa Tokunaka
Title: Executive Deputy President
and CFO
SONY CORPORATION OF AMERICA
By: /s/ Steven E. Kober
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Name: Steven E. Kober
Title: Sr. Vice President
SONY MUSIC ENTERTAINMENT INC.
By: /s/ Kevin M. Kelleher
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Name: Kevin M. Kelleher
Title: Executive Vice President
and CFO
Page 6 of 6
