Music: Metromedia International Group Inc. called off...

Music: Metromedia International Group Inc. called off its $685-million purchase of Alliance Entertainment Inc. after learning that Alliance’s first-quarter revenue would fall below expectations because of weak music sales. “At that point, Metromedia wanted to take another look. Based on that, it was determined that this is not the right deal,” Metromedia spokeswoman Jennefer Hirshberg said. The Atlanta-based film company agreed in November to acquire Alliance, and a month later revised the terms to pay less in stock. Last month, Alliance said it predicted first-quarter revenue of about $175 million, less than expectations of $191 million. The decline comes as profits in the music-distribution business are expected to fall this year as retailers cut prices to compete in an overcrowded market, analysts said. Alliance stock fell $3 to $6 in New York Stock Exchange trading.