Liquid Audio to Give Cash to Investors

The new board of directors at troubled Liquid Audio Inc., a pioneer in the field of online music distribution, has agreed to give much of the company’s cash back to its shareholders.

The company announced late Thursday that the board, which was reconstituted in October, had voted unanimously to return $2.50 per share to investors, a move that will cost $57 million.

Spokeswoman Kim Strop said the Redwood City-based company will have about $20 million in cash, enough to operate for at least another year. But she also said Liquid is exploring several options, including selling all or part of its assets and dissolving the firm.

-- Jon Healey