Napster Files For Chapter 11 - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

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.

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.

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.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Commentary
What Becomes of CFOs During Digital Transformation?
Joao-Pierre S. Ruth, Senior Writer,  2/4/2020
News
Fighting the Coronavirus with Analytics and GIS
Jessica Davis, Senior Editor, Enterprise Apps,  2/3/2020
Slideshows
IT Careers: 10 Job Skills in High Demand This Year
Cynthia Harvey, Freelance Journalist, InformationWeek,  2/3/2020
Register for InformationWeek Newsletters
Video
Current Issue
IT 2020: A Look Ahead
Are you ready for the critical changes that will occur in 2020? We've compiled editor insights from the best of our network (Dark Reading, Data Center Knowledge, InformationWeek, ITPro Today and Network Computing) to deliver to you a look at the trends, technologies, and threats that are emerging in the coming year. Download it today!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll