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.
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