IS THIS THE END FOR MUSIC.COM?

Philippine-based memory chip designer Music Corp. fired staff and closed two offices at Music.com, bringing the Internet unit closer to shutting completely after failing to find an outside investor, Bloomberg reports.

Music.com closed its Nashville and Los Angeles offices and cut the pay of the 12 remaining staff members by as much as half. All told, the company fired 70% of its U.S.-based workers. The cuts may be the death knell for the website.

"The company has held discussions with any number of qualified investors, yet none were ready to make a new Internet investment," said Chief Executive Michael Burton, in a letter to stockholders. The company had hoped to raise $2.1 million to survive until turning to profit in nine months.

In 1998, Music.com changed its focus from semiconductors to pop stars such as Britney Spears to capitalize on the Internet domain name it already owned. The website has never made a profit.

Citicorp Inc., a Music.com shareholder, pledged to invest a further $760,000 on condition that the site found a new investor. Earlier this month, the company stopped looking.

Music.com now plans to sell warrants to Music Corp. stockholders to raise money.

"And if that fails," Burton added, "there’s always a bake sale."