Beleaguered Napster preps for takeover

“A new appointment to Napster’s board of directors indicates that the company is stepping up its efforts to shop its fledgling online music service,” Katie Dean reports for TheStreet.com.

“Napster said in an 8-K filing with the Securities and Exchange Commission last week that it added one more director to its board, Ross Levinsohn, the former president of News Corp’s Fox Interactive Media,” Dean reports. “While there, Levisohn spearheaded the acquisition of the wildly popular MySpace.com, gaming site IGN Entertainment and sports site Scout.com, among several other companies.”

Dean reports, “According to the filing, Levinsohn’s term will expire at the company’s annual stockholder meeting later this year.”

“Napster spokeswoman Becky Farina said that there was ‘no cloak-and-dagger’ explanation for abruptly bringing on Levinsohn. Board members are appointed for three-year terms, and “he’s just joining the group of board members who will be up for revalidation by the shareholders” at the meeting, she says,” Dean reports. “When asked why Levinsohn doesn’t just join the board at the annual meeting, Farina said that the company has an ‘interest in bringing him in sooner rather than later.'”

Dean reports, “That might be because investors are growing impatient for a sale.”

“Napster said it was exploring the idea when it hired banker UBS last fall. Shares had a nice run after the UBS announcement, but have sagged as months have passed without a buyer,” Dean reports.

“Gene Munster, an analyst with Piper Jaffrey, is confident that someone will buy the company, because the Napster brand ‘absolutely’ has value, he says,” Dean reports. “‘The problem is in acquiring Napster you’re stepping in front of a freight train, and the freight train is Apple,’ he says.”

Full article here.

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Napster CEO Chris Gorog has ‘secret plan’ to help beleaguered company become profitable – February 09, 2006
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30 Comments

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  2. Wow. No wonder the Napster CEO keeps spewing rubbish when it comes to Apple. His disdain is directed in the wrong direction. He should be suing and bad-mouthing Microsoft for stiffing them and leaving them out to dry. No wonder the company is toast, it’s run by a bunch of inept managers.

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  5. Don’t worry, even after Naptser dies there will always be the Zune Marketplace to rise to the top and crush Apple.

    Additionally, I like run my Zune for a while so it gets hot and then I place it up under my ball sac. Zune goodness all around!

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    I love that stuff
    I’m on the nightrain
    and I can never get enough
    I’m on the nightrain
    Never to return – no

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