The company are bought by German media giant Bertelsmann...
NAPSTER has had its assets bought by the German media group BERTELSMANN.
Earlier this week, company founder Shawn Fanning and other top Napster executives were reported to have resigned amongst bitter internecine feuding – with the company telling its employees it would become insolvent if a proposed deal with Bertelsmann collapsed.
However, according to the Financial Times newspaper a deal has now been reached. Bertelsmann are to acquire Napster’s assets, paying a reported $8m for the brand and products. They will also discount loans to Napster, thought to be in the region of $85m. Fanning and others are expected to rejoin the group.
Despite Napster’s previous might, the company were hit by massive and costly copyright infringement suits for allowing users to copy music from computer to computer using their free software. They have worked to install an updated service that would require users to pay to swap songs.
Bertelsmann are hoping to relaunch Napster as a subscription service in the future.