Napster considers selling up

Napster has admitted to third-party interest in a potential acquisition

Napster admitted yesterday that it is considering putting itself up for sale.

The music network has retained UBS Investment Bank to evaluate options in response to recent third-party interest in establishing strategic partnerships or potentially acquiring the company.

Chris Gorog, chairman and chief executive at Napster, said: "Napster is in a strong position to continue aggressively building our business as an independent company."

Nand Gangwani, the company's chief financial officer, added that Napster has a balance sheet with a cash position of $97m as of the close of the first quarter and annual revenues in excess of $100m.

For the second half of fiscal 2006, the firm projects an increase in subscription growth from a base of more than half a million subscribers. The company also plans to launch in Japan this year.

Napster has not set a definitive timetable for completion of its evaluation, and explained that there can be no assurances that the evaluation process will result in any specific action.