Welcome Guest. | Log In| Register | Membership Benefits
  • Email this page E-mail this page
  • |  Print Print this page
  • |   Bookmark and Share
  • |  icon
  • | 

Napster Files For Chapter 11


The music file-sharing service has agreed to sell its assets to music-industry leader Bertelsmann AG for $8 million in cash and the assumption of certain liabilities.

By Antone Gonsalves
InformationWeek
June 3, 2002 12:00 AM

Napster Inc., the one-time maverick that angered recording-industry executives by setting off a frenzy of free-music swapping over the Internet, filed for Chapter 11 bankruptcy Monday. The music file-sharing service boasted 60 million users in its heyday.

Napster has agreed to sell its assets to music-industry leader Bertelsmann AG for $8 million in cash and the assumption of certain liabilities, according to papers filed in a Wilmington, Del., court. The liabilities include any new loans to Napster and forgiveness of the $91 million owed to Bertelsmann before the filing, Napster's bankruptcy lawyer Rick Cieri says. After the bankruptcy process is completed, Bertelsmann will take control of Napster, unless there's a higher bid from another company. As of April 30, Napster had $7.9 million in assets and $101 million in liabilities.

More CIO Insights

White Papers

Reports

Videos


The co-authors of Redshaw sees a resurgence in software innovation and talks about the benefits of software as a service and SOA at Motorola. Fritz Nelson spoke with Dan Drawbaugh, last year's InformationWeek Chief of the Year, about what qualities tomorrow's CIO should possess. Dan is the CIO of the University of Pittsburgh Medical Center.
Redshaw sees a resurgence in software innovation and talks about the benefits of software as a service and SOA at Motorola.
The record industry sued Napster, in Redwood City, Calif., for copyright infringement, forcing the company to shut down its service in July 2001. Since then, the five major recording companies have refused to sign licensing deals with Napster, which has been trying to build a legitimate service. Instead, record companies have launched their own services but have had little success in finding a paying audience.


Subscribe to RSS


Advertisement

CAREER CENTER
Ready to take that job and shove it?



TechCareers

SEARCH
Function:

Keyword(s):

State:
SPONSOR
RECENT JOB POSTINGS
CAREER NEWS
10 Search Engines You Don't Know About
Go beyond Google and get vertical. These specialized search sites will help you find the business information you need -- fast.

Yahoo Profits Fall 23%, Cuts 1,000 Jobs
Ari Balogh was named to the post of chief technology officer as the companys for a "realignment" of employees.

More articles from our career center





Subscription Info
Apply for a free 52-week subscription to InformationWeek (a $199 value)

Last Name:

First Name:

Title:

Company Name:

City:

Business Address:

Zip:

State:

Email Address:

NOTE: Offer valid for U.S., U.S. possessions, & Canada only

            

Join economist Chris Cornell and 3 CIOs in an Exclusive Online Exchange for Senior IT Executives: Using IT to Drive Value in a Turbulent Economy. November 5th only.