New York - D&M Holdings reported today that the tentative deal to buy Sonicblue's ReplayTV and Rio portable audio player fell through and Sonicblue will instead sell these assets at auction.
D&M reported it could not come to a final agreement that would meet the court appointed deadline, effectively killing the deal. Sonicblue will auction off its ReplayTV and Rio assets this month. D&M is still interested in acquiring ReplayTV and Rio and may participate in the auction process, a company spokesman said.
SonicBlue filed for Chapter 11 bankruptcy protection in March and had intended to sell off ReplayTV and Rio to D&M Holdings. D&M, parent of Denon and Marantz, made a non-binding proposal in March to acquire Sonicblue's ReplayTV and Rio units for $40 million, minus up to $5 million of assumed liabilities. D&M emphasized that it has not entered into a definitive acquisition agreement and that there's no assurance that the transaction will occur. Last week, D&M announced plans to buy audio maker McIntosh.