Napster to sell securities, stock
p2pnet.net News:- Napster, the resurrected corporate version of the p2p file sharing application that started it all, has had all the breaks any company could reasonably expect.
The Big Four music label cartel has been diligently shoe-horning it into US universities as principal mode of delivery for ‘product,’ billing Napster as an option to being sued – by the Big Four record label cartel.
The lamestream media splash it every time it comes out with a ‘new’ appendage, some analysts continue to discuss it as though it’s a genuine contender in the corporate online music business, and the fact it isn’t going anywhere notwithstanding, it’s somehow still afloat.
However, “expected” first-quarter revenues of $20 million will land it only four million once it’s paid the cartel – “the cost of being legitimate” – and, “All told, Napster is likely to have burned through $27 million, $20 million of that for marketing,” says the Chicago Tribune.
“With $132 million in cash at the end of March, and going through about $27 million a quarter, Napster has roughly until late 2006 to significantly improve its operating margins or risk imploding.”
Now, “Online music company Napster Inc. filed with U.S. regulators on Wednesday to periodically sell up to $200 million in debt securities, common and preferred stock, depositary shares, and warrants,” says Reuters.
A registration statement filed with the Securities and Exchange Commission says it’ll, “use the proceeds from the offering for general corporate purposes, working capital and capital expenditures,” adds the story.
Something you think we should know? tips[at]p2pnet.net
See:-
Chicago Tribune – Fall of the House of Napster, August 5, 2005
Reuters – Napster files for $200 mln debt, stock shelf, August 3, 2005
August 5th, 2005 at 4:50 pm
Napster “WAS” a great organization (not company) back in 2000/01. It started the mp3 file sharing craze.
But keep in mind, that the Napster that we once knew and love is no more. The only remnant of the Napster of yesterdays is the ‘name.’
P2P is THE digital revolution. We the people will NOT be held back back false sentiments and deceptions.
What the RIAA / MPAA do not understand is that P2P is CONSTANTLY EVOLVING — and as long as they employ UNETHICAL tactics, p2p will evolve evermore so quickly.
It’s a game “they” can not win! The name ‘napster’ has NO significance whatsoever. Look at all of the players:
– IRC, bit torrent, limewire, gnutella, gnutella 2, bear share, morpheus, kazaa, mute, freenet, ‘darknet’, etc —- the list goes on, and on, and on….
~~~~~~~ Hey RIAA / MPAA! Do you want to stop the madness?! ~~~~~~
Hey’s some advice:
(1) Treat your artists with respect — That is, don’t rip them off! 10 cents per album is bullshit! “Making an investment” is a load of crap — because, people who know better, know that the ARTIST, yes the artists FORK THE BILLS. Bills, which go to YOUR pockets! The artists practice for YEARS, and it is THEIR creativity. Yet you get all of the “rights” and charge them $100,000 here, $50,000 there, $500,000 (your bonus) there, etc for WHAT?!
(2) Charge a REASONABLE fee — enuf said!
(3) Produce WORTHWHILE shit!
….. There’s many more, but I know that more than 3 points will be too much for your little carniving brains can handle…
August 5th, 2005 at 7:15 pm
I would like to see the renevue verses expense chart to see how much money actually go to the creators of musical works.
August 5th, 2005 at 8:42 pm
Why pray tell would anyone buy stock in a company burning through money quicker than they can make it? It is obvious that Napster wants someone to pick up the tab. Anyone will do just nicely to see what is being stated. How about you? Wanna plop down several thousands in a company that has bankrupty in its future? How about financing the CEO a new home while the company is going down the drain? Or giving him a fat bonus for figuring out how to positioin the company into such dire straits to begin with?
No, I think not. We’ve all seen too many times where seeking public sale of stock is nothing more than an attempt to leave someone else holding the bag when the bills come due.
The rebirth of Napster was for the name only. Nothing else resembles the original. There is no recognition for the original Napster in my mind and nothing to trade on when it comes to the name. Do I know the name Napster? Yes. Does it inspire me to spend money on it? No.
August 6th, 2005 at 5:38 am
Because most ppl who buy stocks are morons. Or are being paid whether the stockowners make money or lose money so they don’t give a damn. Either way owning stocks/shares whatever else you want to call them is a mugs game.
The only reason the big players keep insisting it’s possible for “anyone to get rich” is to ensure there’s a steady supply of idiots who will lose all there money so the big guys can take it.
August 6th, 2005 at 5:40 am
uhh make that “their” money… why can’t we edit these posts? Yeah yeah yeah i know, use the preview. Why do you only ever spot these silly mistakes after hitting submit?
August 6th, 2005 at 12:02 pm
This analysis is quite accurate. I’m constantly amazed at the resourcefulness and informness of the posters here. I’m an expert in the fields of international politics, economics, security (i.e. stocks), and commerce. In addition to holding several high degrees, I’m highly respected by my peers.
Without going into specific details, the previous poster appears to have a solid grasp of the ‘mechanics’ of the stock market.
It’s good to know there are at least a ‘few’ people who can help assist the rest of the masses to become informed.