Dimensional Associates, the private equity arm of JDS Capital, is close to becoming the sole owner of The Orchard.  The consolidation move was announced Tuesday morning, and Dimensional will assume total control over the property.  Dimensional repurchased shares at $2.05 to seal the deal, higher than earlier estimates and proposals.  

Viewed from a broader perspective, this is a distressed valuation, though it represents a 52 percent premium on ORCD shares as priced on October 14th.  The Orchard is now valued at $12.77 million under the Dimensional bid.

So what happens next?  First things first, the deal needs to be approved by Orchard shareholders, and a higher bidder could theoretically emerge.  But that seems unlikely, and a closing is expected within the third quarter. 

After that, a lot of guesswork begins.  One idea is that Dimensional would combine the Orchard with eMusic, though the companies have offered nothing to confirm this theory.  Upon completion of the deal, ORCD will return to private life, and remove itself from the exchange.