The German media monster, Bertelsmann, has announced that they are purchasing online music retailer CDNow.com for $3.00 per share, or around $117 million dollars in cash.

CDNow will now be assimilated into the existing Bertelsmann e-Commerce Group (BeCG), but continue doing business under the CDNow name.

CDNow is reported to have around 700,000 users a day to its site, making it one of the larger music retailers online currently. The deal is also reported to bring a new partnership to CDNOW, as plans were announced for the domain to start working with GetMusic, to feature GetMusic’s content. GetMusic is an online music joint venture between Bertelsmann’s BMG Entertainment and Universal Music Group.

"Our agreement with Bertelsmann represents a successful conclusion to our extensive search for a merger partner. We believe our combination with Bertelsmann is the best outcome for our shareholders, employees and customers. CDNOW has grown from a small startup to a leading online music brand. This transaction allows CDNOW to fulfill its vision of providing music fans with the ultimate music experience by being part of the Bertelsmann family. CDNOW will continue to provide music fans with a digital connection to the world of music through music products, information, entertainment and community." – Jim Olim, CDNOW President, CEO and co-founder.