Roxio to scoop up Napster remains

Napster's final resting place will apparently be with digital media software provider Roxio Inc., which has agreed to acquire the remaining assets of the fallen peer-to-peer (P-to-P) file trading company for US$5 million in cash and 100,000 warrants to purchase Roxio common stock.

Santa Clara, California-based Roxio said Friday that it will acquire all of Napster's intellectual property and technology patent portfolio.

Napster filed for bankruptcy earlier this year after getting knocked offline in a prolonged battle with the music industry over claims that its P-to-P network facilitated copyright infringement.

Roxio said it will not be responsible for the bankrupt company's liabilities, however, which includes pending litigation.

"Roxio's acquisition of Napster will expand our role in the digital media landscape and enhance our offerings to customers," Roxio President and Chief Executive Officer (CEO) Chris Gorog said in a statement.

The company did not offer any specifics on how it plans to use Napster's assets, saying that it will provide more details following the close of the transaction. Roxio added that it expects the deal to close with approval from the bankruptcy court on Nov. 27, 2002.

Other bidders for Napster's remains have included German music giant Bertelsmann AG, and even an adult entertainment company. Bertelsmann seemed the most natural candidate to acquire Napster's assets, however, given that the media conglomerate had already sunk millions into the startup, but its purchase was blocked by the bankruptcy court last September.

Roxio said that its decision to scoop up the remaining Napster assets was based on the companies' synergy in the digital media and entertainment markets.

"We feel that Napster has value," Roxio said in a statement.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Scarlet Pruitt

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Luke Hill


I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?