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BMG to Purchase Napster for $8M
Days after Napster's CEO, founder, and executive team resigned due to disagreements with their Board over its refusal to accept prior Bertlesmann offers, the Board has at last agreed to accept a Bertlesmann $8M purchase proposal.
The capitulation brought about the return of Napster's executive team, but according to industry analysts is unlikely to help the company stave off eventual bankruptcy. All $8M will go to the company's creditors.
Bertlesmann, owner of record labels BMG, Arista, and RCA -- as well as publishing properties such as Doubleday and Alfred A. Knopf -- has spent over $100M in Napster legal fees and settlements over the past two years in hopes that it would eventually be able to use the company's technology and brand-name cache to develop its own for-pay file-sharing service, a concept the market has yet to embrace.
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