Once the darling of digital music, struggling Napster has suggested it could be for sale.
The company said on Monday that it had hired UBS Investment Bank to explore its strategic options, one of which would be a full sale of the business.The subscriber-based service, which represents roughly one-fifth of the legal music download market, is currently struggling to attract and retain subscribers. Peter Ruppert, founder of consultancy Entertainment Media Research, was quoted in the Guardian as saying, "Napster should be worth a fortune because it's a fantastic product. The problem is, it's not common knowledge what subscription means."
Napster 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." The company was bought by Roxio Inc. in 2002.
News of a possible sale sent Napster shares soaring by 13% on the NASDAQ.
