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Source Interlink Sells CD-DVD Distribution Business

Alliance Entertainment bought by M&A firm Platinum Equity and the Gores Group.

By Jason Fell

Source Interlink Companies has officially sold Alliance Entertainment to M&A firm Platinum Equity and the Gores Group, a Los Angeles-based private equity firm. Terms of the deal were not disclosed.

Alliance is a wholesale distributor of CDs, DVDs and games to more than 14,500 locations in the U.S., including retailers like Barnes & Noble, Borders and It also provides fulfillment services, among others.

According to Steve Yager, a senior managing director at the Gores Group, Alliance Entertainment is a ‚Äúfundamentally solid business‚ÄĚ but also faces ‚Äúsubstantial challenges in a rapidly changing distribution market.‚ÄĚ Alliance will be managed by Project Panther Holding Corp., a joint venture between Platinum Equity and the Gores Group.

‚ÄúThis transaction will allow Source Interlink to focus on the continued growth and investment in our core competencies of wholesale magazine distribution and the further integration of our enthusiast media properties across multiple platforms,‚ÄĚ Source CEO Michael Sullivan says in a statement.

When contacted by FOLIO: late last month, a Source representative said the company was not nearing a deal to sell Alliance. UPDATE: In a phone conversation Thursday, the representative said Source was "not actively marketing" a sale of Alliance and that the deal came about "very quickly."

Alliance Entertainment was founded in 1990 in Coral Springs, Florida and currently has distribution centers there and in Louisville, Kentucky. The company merged with Source Interlink in 2005.

By Jason Fell


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