Thurrott on Apple fanatics, Roxio and Napster

“Napster owner Roxio this week sold virtually its entire consumer software division to Sonic for $80 million so it can change its name to Napster and focus solely on getting the music service off the ground. And contrary to charges by Apple fanatics, Napster was already making money and is now poised to make even more: The Napster division was previously earning $7 million to $8 million a quarter and will likely make about $40 million in its first year, according to the company. “With the news today, we are on a path to become a very well-funded pure play in one of the hottest sectors in the consumer technology market,” Napster CEO Chris Gorog said. Indeed, the new Napster has about $130 million in cash, all of which will now go to promoting its music service,” Paul Thurrott writes for WinInfo in his weekly “Short Takes” column.

Full article here.

MacDailyNews Take: $7 to $8 million a quarter, huh? As of June 26, 2004, Apple had $4,966,000,000


  1. Thurrott is an arse. I hate him so much. Such a cocky little smug bastard. He always writes things like “I was right all along” and “Just like I predicted”.

    Well guess what Paul, no one takes any notice of you, I only read what MDN posts (which is more than enough of your FUD). The only people that do listen to you are the brainless morons who still hold out some hope that one day Windows will be useable, virus free and a pleasure to use (just like OS X is today).

    I’d love to meet him, cause 5 minutes afterwards he’d have 2 black eyes, a broken nose and no teeth.

  2. The point is, however, how much are they making selling music. They must think that there is enough market share and profit in the music download business to sell off their bread and butter. Makes you wonder if there is something in the works with MS or some other big player to generate alot of $$$$.

  3. The only path Napster’s on leads straight to Chapter 11. I’d invest in a purchase of The Brooklyn Bridge before I sunk a plug nickel in Gorog’s folly.

  4. eaxit,

    Fanatic is RIGHT!
    I’m fanatical about stopping people writing lies. Thurridiot just writes the first thing that pops into his head and most of the time he just publishes it. If he had a proof reader his pages would consist of about 3 words;


  5. “the new Napster has about $130 million in cash, all of which will now go to promoting its music service,”

    Is that a sign to pull out of a company, or what???

    I predict that Napster will either file for Chapter 11, and then proceed from existence by the end of 2005. Unless MS buys them out. Either way, Apple will have at least one less competitor by the end of next year.


    i am sick and tired to hearing about him. i don’t give a shit what he thinks of mac users. fscking report on something WE CARE ABOUT.

  7. Getting focus solely on the music market? Isn’t it better to be diversified a little bit? “Never put all your eggs in one basket”. Why get rid of the software division? Roxio’s Toast is a very good application. I don’t know how healthy the sales of Toast are.

    A whole change on the market target: Roxio was a consumer software maker, then they buy Napster. Now, their original objective have lost.

  8. Roxio’s share price has dropped to a level less than cash, that’s how much the shareholders like it. And Sonic shareholders think they have got a good deal with Toast, Easy CD Creator etc.,snic,aapl&c=^IXIC

    So Gorog sold Roxio too cheaply, a sign of desparation to raise cash?

    Bear in mind Roxio has changed from a money making software company to a money losing media company overnight which will undoubtably spook many investors. Nevertheless trading for less than cash shows low confidence in how the cash will be used.

    What mental image is produced by the word Napster, asleep at the wheel?

  9. According to Roxio’s own press release, Napster lost money in the just completed quarter: “Revenues for the Company’s Napster
    division totaled $7.9 million and included $1.1 million from hardware sales
    of MP3 players to partners. Napster’s operating loss, before restructuring,
    amortization and stock based compensation was approximately $8.1 million.”

    Thuridiot is confusing revenue with profit.

  10. 12-81

    Man you are so on. You know Paul has a serious case of narcissism. He is the first guy to have DSL in the USA. Did you know that! I saw one of his blogs talking about that. He knows everything too. How do I know that you may ask? He told me. Man is he ever plugged in to everything. I am enamoured by him. NOT.

    I bet he is one of those guys who says “I told you so” every second sentence. His non-sense is garbage and I cannot believe he is published. It is baffling to me.

    Anyway….I’d likely join you in the Thurott lynching….

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  11. PT obviously does not know how to read financial statements. Roxio’s Napster service has a profit of about 1%. What kind of business model is that if you are a public company that is supposed to make a profit for its investors? So what good is $80 million when you spend it all and do make any in return b/c your cost of doing business equals or surpasses what you bring in?

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