3dGameMan
09-18-2004, 10:06 AM
The cat comes back: ~source (http://www.globetechnology.com/servlet/story/RTGAM.20040917.gtnapster0917/BNStory/Technology/)
http://images.theglobeandmail.com/archives/RTGAM/images/20040917/gtnapster0917/gorog.jpg
Napster CEO Chris Gorog in his Beverly Hills office: Call it the kitty's third life.
Associated Press
SAN JOSE, Calif. — Call it the kitty's third life.
Roxio Inc. bought the Napster brand name and feline logo at a bankruptcy auction two years ago and, with the acquisition of another music service called Pressplay, relaunched the once-renegade file-swapping pioneer as a legal music service last October.
Now in its latest reincarnation, Roxio has shed its CD-burning software business and plans to concentrate solely on selling and delivering music over the Web. It will adopt Napster as its corporate name, trading under a new ticker symbol.
The pure-play move will mark Napster's birth as the name of a public company, but more importantly, arm the company with resources to help survive the rough-and-tumble as other deep-pocketed, powerful rivals enter the crowded on-line music space.
In the past two weeks, Microsoft Corp. started its on-line music service, and Yahoo Inc. acquired on-line jukebox provider Musicmatch Inc. EMI Group's Virgin is among those expected to soon join the fray, which already includes the pioneer of legitimate downloads and the current market leader, Apple Computer Inc.
Roxio's sale of its software business to Sonic Solutions for $80-million (U.S.) in cash and stocks will give Napster a cash base of more than $100-million once the deal closes, expected by year's end.
"One of the most important questions for our investors is, 'Does Napster have the staying power to stay and thrive?' Having the cash answers that question," said Chris Gorog, chief executive and chairman of Roxio.
It will be more than enough to cover Napster until it becomes profitable, Mr. Gorog said, "and we're on a clear path to do that."
Roxio's revenues grew 24 per cent to $29.9-million in the April-June quarter compared with a year ago, though the company had a net loss of $2.6-million, or 8 cents per share, dragged in part by the Napster unit's $8.1-million loss.
But Mr. Gorog said Napster's sales are growing at a double-digit rate — it increased by more than tenfold to $7.9-million that quarter — and he projected on-line music revenues will reach $30-million to $40-million this fiscal year.
Analysts say Napster has its work cut out...
http://images.theglobeandmail.com/archives/RTGAM/images/20040917/gtnapster0917/gorog.jpg
Napster CEO Chris Gorog in his Beverly Hills office: Call it the kitty's third life.
Associated Press
SAN JOSE, Calif. — Call it the kitty's third life.
Roxio Inc. bought the Napster brand name and feline logo at a bankruptcy auction two years ago and, with the acquisition of another music service called Pressplay, relaunched the once-renegade file-swapping pioneer as a legal music service last October.
Now in its latest reincarnation, Roxio has shed its CD-burning software business and plans to concentrate solely on selling and delivering music over the Web. It will adopt Napster as its corporate name, trading under a new ticker symbol.
The pure-play move will mark Napster's birth as the name of a public company, but more importantly, arm the company with resources to help survive the rough-and-tumble as other deep-pocketed, powerful rivals enter the crowded on-line music space.
In the past two weeks, Microsoft Corp. started its on-line music service, and Yahoo Inc. acquired on-line jukebox provider Musicmatch Inc. EMI Group's Virgin is among those expected to soon join the fray, which already includes the pioneer of legitimate downloads and the current market leader, Apple Computer Inc.
Roxio's sale of its software business to Sonic Solutions for $80-million (U.S.) in cash and stocks will give Napster a cash base of more than $100-million once the deal closes, expected by year's end.
"One of the most important questions for our investors is, 'Does Napster have the staying power to stay and thrive?' Having the cash answers that question," said Chris Gorog, chief executive and chairman of Roxio.
It will be more than enough to cover Napster until it becomes profitable, Mr. Gorog said, "and we're on a clear path to do that."
Roxio's revenues grew 24 per cent to $29.9-million in the April-June quarter compared with a year ago, though the company had a net loss of $2.6-million, or 8 cents per share, dragged in part by the Napster unit's $8.1-million loss.
But Mr. Gorog said Napster's sales are growing at a double-digit rate — it increased by more than tenfold to $7.9-million that quarter — and he projected on-line music revenues will reach $30-million to $40-million this fiscal year.
Analysts say Napster has its work cut out...