The announcement comes after media speculation that Napster LLC would be unable to sustain itself due to dwindling subscriber numbers and lack of profit.
Anticipation of a deal led the company’s stock to surge 12% to $3.70 recently. On September 18, the company’s stock reached $3.99 after confirmation of its for sale status.
In a statement, Napster chairman and chief executive Chris Gorog said, Our goal is to enhance shareholder value, which could potentially lead to a new strategic partnership or the sale of the company, but in any event our primary focus will remain on growing Napster.
The Napster service was created in 2000 by Shawn Fanning but forced to close in 2002 following legal challenges over copyright infringement. In 2003, it was bought by software firm Roxio, and the service relaunched as a legal download service. At its height, more than 100 million users accessed the service via a network of linked computers. Currently the subscription number is nearer the 500,000 mark.
