While a lot of people left Napster, they seem now to be coming back. Recently we reported that Napster's CEO was leaving the companie, but now Cnet reports that he has agreed to come back.
Also the founder of Napster, Shawn Fanning will join the team. Bertellsman, who already owns a part of Napster has agreed to buy the rest of company for $8 million:
Napster CEO Konrad Hilbers and Shawn Fanning, Napster's creator, will remain with the company. |
On Tuesday Hilbers announced his resignation after Napster's board of directors rejected a deal for the company to be acquired by the German company. Fanning at that time also decided to leave the company, sources said.
Under Friday's deal, Bertelsmann will pay $8 million to Napster's creditors to acquire the company's assets. The transaction opens the door for Napster to file for Chapter 11 bankruptcy protection, according to sources close to the deal.
"We are very pleased to have reached an agreement with Napster's board of directors," Joel Klein, CEO of Bertelsmann, the services and legal arm of Bertelsmann AG, said in a statement.
"We're happy to see Napster move forward with Konrad Hilbers at the helm," Klein continued. "We are very committed to providing artists the best possible distribution opportunities for their work, and to provide consumers more choice and control."
The deal is a bargain for Bertelsmann, which offered to buy Napster for $16 million earlier this week, according to sources familiar with the deal. Quarrelling board members who opposed the deal caused the earlier transaction to fall through, the sources said.
I really wonder if I don't understand the ideas of Napster, or are the people at Bertellsman and Napster really believing they will make money with their marketing strategy ? Who knows what changes they have in mind, or not
Thanks to Enigma for using our newssubmit to tell us about this !
Source: Cnet.com
