Da-Chief
07-20-2008, 23:30
http://i.dslr.net/urls/75/2075.gif (http://www.dslreports.com/shownews/Napster-Aims-To-Make-Profits-In-Mobile-Music-Market-96247)
Most people haven t heard anything about Napster since the company went bankrupt in 2002 after lawsuits regarding the illegal filesharing taking place on the site. However, it s been an active company for the past four years since being bought and re-launched by Roxio Inc. It is now an online music-subscription service that controls about half of its market. Despite this, the company hasn t turned a profit since the relaunch. CEO Christopher Gorog hopes to change that now that Napster has teamed up with AT&T to offer Napster as a mobile music service; the goal for the company at the current time is to develop similar partnerships with other carriers in order to base revenue growth on the emerging mobile music market. However, a lack of faith in the leadership of the company has shareholders worried that there is no way that the company is ever going to turn profits again. Market analysts point out (http://www.bloomberg.com/apps/news?pid=20601103&sid=aoh.JuHEG690&refer=news) that Napster is in an interesting position because the company s value is lower than the amount of cash and assets it has; this could make it a target for new investors interested in purchasing a business that is worth more dead than alive .
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Most people haven t heard anything about Napster since the company went bankrupt in 2002 after lawsuits regarding the illegal filesharing taking place on the site. However, it s been an active company for the past four years since being bought and re-launched by Roxio Inc. It is now an online music-subscription service that controls about half of its market. Despite this, the company hasn t turned a profit since the relaunch. CEO Christopher Gorog hopes to change that now that Napster has teamed up with AT&T to offer Napster as a mobile music service; the goal for the company at the current time is to develop similar partnerships with other carriers in order to base revenue growth on the emerging mobile music market. However, a lack of faith in the leadership of the company has shareholders worried that there is no way that the company is ever going to turn profits again. Market analysts point out (http://www.bloomberg.com/apps/news?pid=20601103&sid=aoh.JuHEG690&refer=news) that Napster is in an interesting position because the company s value is lower than the amount of cash and assets it has; this could make it a target for new investors interested in purchasing a business that is worth more dead than alive .
read comment(s) (http://www.dslreports.com/shownews/Napster-Aims-To-Make-Profits-In-Mobile-Music-Market-96247)
More...