Like a phoenix from the ashes, Napster has come back not once, but twice it seems. Since Roxio bought the Napster name and logo a couple years ago at a bankruptcy auction, Napster received a new "lease on life". This time around Napster isn't just a service, it's to become a public company and will be traded on the stock exchange.
Roxio has recently sold off it's CD-burning software business in a move to concentrate solely on selling music online. Using Napster as it's company name, it will allow Roxio to compete with other online music delivery services from the likes of Microsoft, Yahoo!, and Apple.
Roxio's sale of its software business landed them a cool $80 million in cash and stocks which will give Napster a cash base of more than $100 million once the deal closes, expected by year's end.
"One of the most important questions for our investors is, 'Does Napster have the staying power to stay and thrive?' Having the cash answers that question," said Chris Gorog, chief executive and chairman of Roxio.
It will be more than enough to cover Napster until it becomes profitable, Gorog said, "and we're on a clear path to do that."
View: More Information
-1 Comments - Add comment