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.
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See:-
Chicago Tribune – Fall of the House of Napster, August 5, 2005
Reuters – Napster files for $200 mln debt, stock shelf, August 3, 2005
