-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LBIrivvOF8NmN2CvLngULPbTboB++dmqLcnipnQ8fh1fWpEKIr14ou9NArQchHXQ fZQezoaoNND2YphmmYqwww== 0000922423-02-000264.txt : 20020415 0000922423-02-000264.hdr.sgml : 20020415 ACCESSION NUMBER: 0000922423-02-000264 CONFORMED SUBMISSION TYPE: SC 13D PUBLIC DOCUMENT COUNT: 3 FILED AS OF DATE: 20020301 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: BARINGTON CAPITAL GROUP L P CENTRAL INDEX KEY: 0000887762 FILING VALUES: FORM TYPE: SC 13D BUSINESS ADDRESS: STREET 1: 888 SEVENTH AVENUE 17TH FL CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 2129745400 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: LIQUID AUDIO INC CENTRAL INDEX KEY: 0001016613 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373] IRS NUMBER: 770421089 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D SEC ACT: 1934 Act SEC FILE NUMBER: 005-57595 FILM NUMBER: 02565209 BUSINESS ADDRESS: STREET 1: 800 CHESAPEAKE DRIVE CITY: REDWOOD CITY STATE: CA ZIP: 94063 BUSINESS PHONE: 6505492000 MAIL ADDRESS: STREET 1: LIQUID AUDIO INC STREET 2: 800 CHESAPEAKE DRIVE CITY: REDWOOD CITY STATE: CA ZIP: 94063 SC 13D 1 kl03003_sc13d.txt SCHEDULE 13D UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13D (Rule 13d-101) (Amendment No. 6) INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13d-1(A) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(a) Liquid Audio, Inc. ------------------ (Name of Issuer) Common Stock, $.001 par value ----------------------------- (Title of Class of Securities) 53631T102000 ------------ (CUSIP Number) Mr. James Mitarotonda c/o Barington Capital Group, L.P. 888 Seventh Avenue, 17th Floor New York, N.Y. 10019 (212) 974-5700 -------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) February 22, 2002 ----------------- (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 which is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), 13d-1(f), or 13d-1(g), check the following box: |_|. SCHEDULE 13D CUSIP No. 53631T102000 1) NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON musicmaker.com, Inc. 54-1811721 - -------------------------------------------------------------------------------- 2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [x] (b) |_| - -------------------------------------------------------------------------------- 3) SEC USE ONLY - -------------------------------------------------------------------------------- 4) SOURCE OF FUNDS WC - -------------------------------------------------------------------------------- 5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6) CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7) SOLE VOTING POWER NUMBER OF 655,700 SHARES ___________________________________________________ BENEFICIALLY 8) SHARED VOTING POWER OWNED BY none EACH ___________________________________________________ REPORTING 9) SOLE DISPOSITIVE POWER PERSON 655,700 WITH ___________________________________________________ 10) SHARED DISPOSITIVE POWER none - ------------------------------------------------------------------------------- 11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 655,700 - ------------------------------------------------------------------------------- 12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - ------------------------------------------------------------------------------- 13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 2.9% - ------------------------------------------------------------------------------- 14) TYPE OF REPORTING PERSON CO - ------------------------------------------------------------------------------- -2- SCHEDULE 13D CUSIP No. 53631T102000 1) NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Jewelcor Management, Inc. 23-2331228 - ------------------------------------------------------------------------------- 2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [x] (b) |_| - ------------------------------------------------------------------------------- 3) SEC USE ONLY - ------------------------------------------------------------------------------- 4) SOURCE OF FUNDS WC - ------------------------------------------------------------------------------- 5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - ------------------------------------------------------------------------------- 6) CITIZENSHIP OR PLACE OF ORGANIZATION Nevada - ------------------------------------------------------------------------------- 7) SOLE VOTING POWER NUMBER OF 475,500 SHARES ____________________________________________________ BENEFICIALLY 8) SHARED VOTING POWER OWNED BY none EACH ____________________________________________________ REPORTING 9) SOLE DISPOSITIVE POWER PERSON 475,500 WITH ____________________________________________________ 10) SHARED DISPOSITIVE POWER none - -------------------------------------------------------------------------------- 11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 475,500 - -------------------------------------------------------------------------------- 12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - -------------------------------------------------------------------------------- 13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 2.1% - -------------------------------------------------------------------------------- 14) TYPE OF REPORTING PERSON CO - -------------------------------------------------------------------------------- -3- SCHEDULE 13D CUSIP No. 53631T102000 1) NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Barington Companies Equity Partners, L.P. 13-4088890 - -------------------------------------------------------------------------------- 2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [x] (b) |_| - -------------------------------------------------------------------------------- 3) SEC USE ONLY - -------------------------------------------------------------------------------- 4) SOURCE OF FUNDS WC - -------------------------------------------------------------------------------- 5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6) CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7) SOLE VOTING POWER NUMBER OF 339,200 SHARES _____________________________________________________ BENEFICIALLY 8) SHARED VOTING POWER OWNED BY none EACH _____________________________________________________ REPORTING 9) SOLE DISPOSITIVE POWER PERSON 339,200 WITH _____________________________________________________ 10) SHARED DISPOSITIVE POWER none - -------------------------------------------------------------------------------- 11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 339,200 - -------------------------------------------------------------------------------- 12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - -------------------------------------------------------------------------------- 13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 1.5% - -------------------------------------------------------------------------------- 14) TYPE OF REPORTING PERSON PN - -------------------------------------------------------------------------------- -4- SCHEDULE 13D CUSIP No. 53631T102000 1) NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Ramius Securities, LLC 58-2253019 - -------------------------------------------------------------------------------- 2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [x] (b) |_| - -------------------------------------------------------------------------------- 3) SEC USE ONLY - -------------------------------------------------------------------------------- 4) SOURCE OF FUNDS WC - -------------------------------------------------------------------------------- 5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - -------------------------------------------------------------------------------- 6) CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7) SOLE VOTING POWER NUMBER OF 89,500 SHARES _____________________________________________________ BENEFICIALLY 8) SHARED VOTING POWER OWNED BY none EACH _____________________________________________________ REPORTING 9) SOLE DISPOSITIVE POWER PERSON 89,500 WITH _____________________________________________________ 10) SHARED DISPOSITIVE POWER none - -------------------------------------------------------------------------------- 11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 89,500 - -------------------------------------------------------------------------------- 12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - -------------------------------------------------------------------------------- 13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) less than 1.0% - -------------------------------------------------------------------------------- 14) TYPE OF REPORTING PERSON OO - -------------------------------------------------------------------------------- -5- SCHEDULE 13D CUSIP No. 53631T102000 1) NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Domrose Sons Partnership 11-3256586 - -------------------------------------------------------------------------------- 2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [x] (b) |_| - ------------------------------------------------------------------------------- 3) SEC USE ONLY - ------------------------------------------------------------------------------- 4) SOURCE OF FUNDS WC - ------------------------------------------------------------------------------- 5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - ------------------------------------------------------------------------------- 6) CITIZENSHIP OR PLACE OF ORGANIZATION New York - ------------------------------------------------------------------------------- 7) SOLE VOTING POWER NUMBER OF 8,000 SHARES ___________________________________________________________ BENEFICIALLY 8) SHARED VOTING POWER OWNED BY none EACH ___________________________________________________________ REPORTING 9) SOLE DISPOSITIVE POWER PERSON 8,000 WITH ___________________________________________________________ 10) SHARED DISPOSITIVE POWER none - ------------------------------------------------------------------------------- 11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 8,000 - ------------------------------------------------------------------------------- 12) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - ------------------------------------------------------------------------------- 13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) less than 1.0% - ------------------------------------------------------------------------------- 14) TYPE OF REPORTING PERSON PN - ------------------------------------------------------------------------------- -6- Introduction. This Amendment No. 6 amends and supplements the Schedule 13D, dated September 28, 2001, as amended to date (the "Schedule 13D"), filed with the Securities and Exchange Commission by musicmaker.com, Inc. ("musicmaker"), Jewelcor Management, Inc., Barington Companies Equity Partners, L.P., Ramius Securities, LLC and Domrose Sons Partnership with respect to the common stock, $.001 par value (the "Common Stock"), of Liquid Audio, Inc., a Delaware corporation (the "Company"). The principal executive offices of the Company are located at 800 Chesapeake Drive, Redwood City, California 94063. Item 3 of the Schedule 13D, "Source and Amount of Funds or Other Consideration," is deleted in its entirety and replaced with the following: All purchases of Common Stock by the Reporting Entities were made in the open market and were funded by working capital, which may, at any given time, include margin loans made by brokerage firms in the ordinary course of business. The amount of the funds expended by the Reporting Persons for such purchases was $1,448,535 by musicmaker.com, Inc.; $1,036,831 by Jewelcor Management, Inc.; $747,781 by Barington Companies Equity Partners, L.P.; $207,686 by Ramius Securities, LLC; and $16,428 by Domrose Sons Partnership. Item 4 of the Schedule 13D, "Purpose of Transaction," is amended by adding the following: On February 22, 2002, musicmaker sent a letter to the President and Chief Executive Officer, as well as to each director, of the Company setting forth its willingness to acquire the Company on a negotiated basis, through an appropriate acquisition entity, for a price of $2.50 per share in cash. A copy of that letter is filed as Exhibit 99.12 hereto and incorporated herein by reference. No response to that letter has been received to date. Item 5(a) of the Schedule 13D, "Interest in Securities of the Issuer," is deleted in its entirety and replaced with the following: As of the date hereof, the Reporting Entities own an aggregate of 1,567,900 shares of Common Stock, representing approximately 6.9% of the outstanding shares of Common Stock based upon the 22,704,615 shares of Common Stock reported by the Company to be issued and outstanding as of October 31, 2001 in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2001. As of the date hereof, musicmaker.com, Inc. beneficially owns an aggregate of 655,700 shares of Common Stock, representing approximately 2.9% of the outstanding shares of Common Stock. As of the date hereof, Jewelcor Management, Inc. beneficially owns an aggregate of 475,500 shares of Common Stock, representing approximately 2.1% of the outstanding shares of Common Stock. -7- As of the date hereof, Barington Company Equities Partners, L.P. beneficially owns an aggregate of 339,200 shares of Common Stock, representing approximately 1.5% of the outstanding shares of Common Stock. As of the date hereof, Ramius Securities, LLC beneficially owns an aggregate of 89,500 shares of Common Stock, representing less than 1% of the outstanding shares of Common Stock. As of the date hereof, Domrose Sons Partnership beneficially owns an aggregate of 8,000 shares of Common Stock, representing less than 1% of the outstanding shares of Common Stock. Item 7 of the Schedule 13D, "Material to be Filed as Exhibits," is amended by adding the following: 99.11 Letter to Liquid Audio, Inc. dated February 12, 2002. 99.12 Letter to Liquid Audio, Inc. dated February 22, 2002. Schedule III of the Schedule 13D, "Shares purchased by musicmaker.com, Inc.," is deleted in its entirety and replaced with the following: Date Number of Shares Price Per Share Cost(1) - ---- ---------------- --------------- ------- 8/14/01 2,000 $ 2.25 $ 4,500.00 8/15/01 100,000 $ 2.33 $ 233,000.00 8/16/01 5,000 $ 2.30 $ 11,500.00 8/21/01 10,000 $ 2.30 $ 23,000.00 8/27/01 20,000 $ 2.33 $ 46,600.00 8/28/01 15,000 $ 2.38 $ 35,700.00 8/28/01 5,000 $ 2.28 $ 11,400.00 9/4/01 12,000 $ 2.37 $ 28,400.00 9/5/01 2,500 $ 2.31 $ 5,775.00 9/5/01 1,000 $ 2.32 $ 2,320.00 9/6/01 10,000 $ 2.33 $ 23,300.00 9/17/01 7,000 $ 2.14 $ 14,980.00 9/17/01 5,000 $ 2.06 $ 10,300.00 9/18/01 10,000 $ 2.135 $ 21,350.00 9/19/01 10,000 $ 2.197 $ 21,970.00 9/20/01 10,000 $ 2.18 $ 21,800.00 9/21/01 6,500 $ 2.07 $ 13,455.00 9/24/01 25,000 $ 2.12 $ 53,000.00 9/24/01 10,000 $ 2.10 $ 21,000.00 9/25/01 50,000 $ 2.048 $ 102,400.00 - ------------- (1) Excludes commissions and other execution-related costs. -8- Date Number of Shares Price Per Share Cost(1) - ---- ---------------- --------------- ------- 9/26/01 25,000 $ 2.035 $ 50,875.00 9/27/01 30,000 $ 2.052 $ 61,560.00 9/28/01 27,500 $ 2.07 $ 56,925.00 10/1/01 30,000 $ 2.075 $ 62,250.00 10/4/01 30,000 $ 2.13 $ 63,900.00 10/5/01 50,000 $ 2.135 $ 106,750.00 10/5/01 7,000 $ 2.13 $ 14,910.00 11/16/01 25,000 $ 2.34 $ 58,500.00 11/21/01 5,000 $ 2.35 $ 11,750.00 11/30/01 3,600 $ 2.32 $ 8,352.00 12/14/01 3,000 $ 2.31 $ 6,930.00 12/17/01 50,000 $ 2.33 $ 116,500.00 12/18/01 25,000 $ 2.34 $ 58,500.00 12/28/01 5,000 $ 2.31 $ 11,550.00 12/28/01 2,900 $ 2.31 $ 6,699.00 12/28/01 5,000 $ 2.31 $ 11,550.00 12/31/02 3,200 $ 2.30 $ 7,360.00 2/25/02 1,500 $ 2.22 $ 3,330.00 2/27/02 2,000 $ 2.23 $ 4,460.00 2/27/02 2,000 $ 2.24 $ 4,480.00 2/27/02 3,800 $ 2.24 $ 8,512.00 2/27/02 2,000 $ 2.21 $ 4,420.00 2/28/02 1,200 $ 2.21 $ 2,652.00 - ------------- (1) Excludes commissions and other execution-related costs. -9- SIGNATURES After reasonable inquiry and to the best knowledge and belief of the undersigned, the undersigned certify that the information set forth in this Statement is true, complete and correct. Dated: March 1, 2002 MUSICMAKER.COM, INC. By /s/ James A. Mitarotonda ------------------------------------- Name: James A. Mitarotonda Title: President and Chief Executive Officer JEWELCOR MANAGEMENT, INC. By /s/ Seymour Holtzman ------------------------------------- Name: Seymour Holtzman Title: Chairman and Chief Executive Officer BARINGTON COMPANIES EQUITY PARTNERS, L.P. By: Barington Companies Investors, LLC, its general partner By /s/ James A. Mitarotonda ------------------------------------- Name: James A. Mitarotonda Title: President and Chief Executive Officer RAMIUS SECURITIES, LLC By: Ramius Capital Group, LLC, its managing member By /s/ Peter A. Cohen ------------------------------------- Name: Peter A. Cohen Title: Manager DOMROSE SONS PARTNERSHIP By /s/ James A. Mitarotonda ------------------------------------ Name: James A. Mitarotonda Title: Partner -10- EX-99 3 kl03003_ex99-11.txt EXHIBIT 99.11 LETTER Exhibit 99.11 musicmaker.com, Inc. c/o Barington Capital Group, L.P. 888 Seventh Avenue 17th Floor New York, New York 10019 February 12, 2002 Board of Directors Liquid Audio, Inc. 800 Chesapeake Drive Redwood City, California 94063 Ladies and Gentlemen: We see that Sylvia Kessel has now resigned from the Company's board of directors. In order that the new board vacancy created by Ms. Kessel's resignation may be filled in accordance with the wishes of the shareholders, we hope that the board will refrain from attempting to fill that vacancy prior to the 2002 Annual Meeting of the Company's Shareholders. Moreover, we trust that the Annual Meeting will be held without delay. As you know, we have already given notice, in accordance with the Company's publicly filed By-Laws, of shareholder nominations for directors and other proposals in connection with the Annual Meeting. In view of the continued rapid depletion of the Company's cash and the other critical issues facing the Company, it is crucial that the voices of all concerned shareholders be heard. Accordingly, we respectfully request that the 2002 Annual Meeting be held as soon as possible, and in any event well before June 1 (the date of last year's Annual Meeting). The collapse of Enron Corporation and other recent events have created a climate in which it is important for officers and especially directors of public companies to demonstrate independent judgment and scrupulous attention to corporate affairs. We hope that you will appreciate the interest of all shareholders in seeing that the Company's management fully discharges these fiduciary duties and acts responsibly to schedule the Annual Meeting as promptly as possible (as well as avoiding any controversy or delay which would cause the Company to incur legal and other costs and further damage shareholders' interests). We urge you to commit now, in good faith, to a specific date or range of dates to hold the 2002 Annual Meeting at the earliest possible time. If management does not commit to an expeditious Annual Meeting schedule within 10 days, by public announcement or by reply to us, we must take that as a sign that management will attempt to delay holding an Annual Meeting. Very truly yours, /s/ Seymour Holtzman ------------------------------------- Seymour Holtzman Chairman of the Board /s/ James A. Mitarotonda ------------------------------------- James A. Mitarotonda President and Chief Executive Officer MUSICMAKER.COM, INC. cc: Gerald W. Kearby Raymond A. Doig Robert Flynn Stephen V. Imbler Ann L. Winblad Mark L. Reinstra, Esq. EX-99 4 kl03003_ex99-12.txt EXHIBIT 99.12 LETTER TO LIQUID AUDIO INC Exhibit 99.12 musicmaker.com, Inc. c/o Barington Capital Group, L.P. 888 Seventh Avenue 17th Floor New York, New York 10019 February 22, 2002 Mr. Gerald Kearby President and Chief Executive Officer Liquid Audio, Inc. 800 Chesapeake Drive Redwood City, CA 94063 Dear Mr. Kearby: musicmaker.com, Inc. ("musicmaker") and others in our group are the beneficial owners of an aggregate of approximately 6.5% of Liquid Audio's outstanding common stock. As you know, we have previously written to you, and on one occasion met with you and other members of the Company's management, to express our deep concerns regarding the Company's financial situation and strategic direction. In October 2001, we indicated an interest, to which you did not respond, in pursuing a potential acquisition of Liquid Audio at a price we then anticipated could be in the range of $3.00 per share. Unfortunately, we believe the Company's situation has deteriorated further over the past four months. However, despite this deterioration, and the fact that the Company's has lost 95% of its equity market value in the last two years and continues to deplete cash rapidly under its current operating strategy, we believe that there is still value inherent in the business and assets of the Company. Accordingly, musicmaker hereby sets forth its willingness to acquire the Company on a negotiated basis, through a merger with an appropriate acquisition entity, for a price of $2.50 per share in cash. This proposal is meaningfully higher than the current market price of the Company's stock, and will provide the Company's stockholders with an immediate opportunity to realize value from their investment in the Company. Our proposal, however, is conditioned upon the satisfactory completion of due diligence, obtaining all necessary consents and approvals, amendment of the Company's shareholders' rights plan, waiver of any other anti-takeover provisions and other customary conditions. We urge you to seriously and responsibly consider this proposal, and to schedule a meeting with us promptly. Please contact me at (212) 974-5700. Respectfully, /s/ James A. Mitarotonda -------------------------------------- James A. Mitarotonda President and Chief Executive Officer cc: Board of Directors Liquid Audio, Inc. -----END PRIVACY-ENHANCED MESSAGE-----