Musicmaker.com (Nasdaq: HITS) was down 1/16 at 1 15/16 in early trading Monday after the Reston, Virginia-based provider of digital downloadable music said it and America Online (NYSE: AOL) “mutually agreed” to end their interactive marketing agreement.
The company did not say why the alliance was cancelled or disclose the terms. Last September, Musicmaker.com announced the $20 million, three-year agreement to sell its services over AOL’s various outlets. The agreement also called for cross-marketing and profit-sharing, and gave AOL a $2 million equity stake in the company.
Musicmaker lost 34 cents per share in the first quarter, compared with a loss of 27 cents in the same quarter a year earlier. Revenue, meanwhile, soared to $3.09 million from $20,000. Company shares have been on a steady decline all year, and are near a 52-week low.