Beleaguered Napster faces disgruntled investors, board unrest

“A dissident shareholder group’s bid to muscle its way onto the board of struggling digital music service Napster is getting a thumbs-down from a pair of leading independent proxy advisers,” Brian Garrity reports for The New York Post. “Napster yesterday released select excerpts of findings from Proxy Governance and Glass Lewis in support of its argument that the opposition’s proposed slate for the board isn’t qualified because the nominees have no previous history of serving as directors of a public company.”

MacDailyNews Take: Like it matters. As if the current board members are “qualified” at anything beyond holding on for dear life as the company endlessly circles the bowl. Will somebody please just flush this thing once and for all?!

Garrity continues, “Napster is seeking re-election for its own slate of three directors, who the company says have over 34 years of combined experience serving as board members.”

MacDailyNews Take: Bozo the Clown would be a better Napster board member; one would assume that at least he knows he’s already dead.

Garrity continues, “Disgruntled individual investors Perry Rod, Thomas Sailors and Kavan Singh, who collectively hold slightly more than a 1 percent stake in the company, are seeking slots on the board, complaining of Napster’s direction under CEO Chris Gorog. They argue that the company has failed to take advantage of the growing business opportunities in digital music, losing ground to rivals like Apple’s iTunes.”

Full article here.

Me Gorog. Me like going ’round and ’round. Me like smooth porcelain and nice wet water. It’s no wonder these so-called “investors” are complaining of Napster’s direction under Gorog, they must be beyond dizzy by now. Don’t worry, hopefully it’ll all be over soon.


  1. I have got some sage advice for all the Napster Investors… SELL!!! Now!! Cause once it’s on the Pink Sheets baby, there is no return on your investment. If you cash out now at a loss say, better now then a much bigger loss down the road, take your tax write off and then just sit back while you watch the rest of the suckers go down the drain.

  2. There is enough money left in the company to pay the shareholders what their stock is currently worth. They keep operating in the red like they are and soon the stock will be worthless.

    All they want is for Gorog to shut down the company and give the money back to the shareholders.

    They’re moving on Dell next.

  3. Suggestion numero uno: Make your service work with iPods, that way you can at least stay afloat. And by ‘work’, I mean Napster provides a tiny little plugin for iTunes that provides nearly seamless integration with iTunes and iPods – Kind of like Amazon… No, exactly like Amazon, and Rio (God rest their souls). Rio’s iTunes plugin still works with the latest version of iTunes 7 – it’s painless for everybody.

    It’s perfectly okay for MS products to totally dominate, legally or illegally, but OMG, if Apple has got a corner of a corner cornered, some people just can’t stand it just because. So much for objectivity in business eh Napster.

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