- Roxio, Inc. (Nasdaq: ROXI), the Digital Media Company, provider of the best selling digital media software in the world, announced today that it has entered into a definitive agreement to acquire substantially all of the assets of Napster, Inc. As part of the transaction, Roxio will receive all of Napster’s intellectual property including its technology patent portfolio. Roxio is not assuming any of Napster’s liabilities, including pending litigation. Roxio’s purchase of Napster’s assets is subject to approval of the bankruptcy court.
Roxio’s President and CEO Chris Gorog commented, “Roxio’s acquisition of Napster will expand our role in the digital media landscape and enhance our offerings to consumers. We look forward to continuing to work with our partners in the entertainment industry and will be announcing further plans in the coming months.”
Who is Roxio, you may ask?
- Roxio, Inc. (Nasdaq:ROXI) provides the best selling digital media software in the world. Roxio makes award-winning software products for CD/DVD burning, photo editing and video editing. Roxio’s family of products includes category leading products Easy CD Creator ® (Windows) and Toast (Macintosh) for CD/DVD burning, PhotoSuite for digital photography, and VideoWave for digital video. Roxio also makes GoBack, the #1 selling system recovery software that enables PC users to instantly recover from system crashes, virus attacks and data loss.
FAQs about the deal:
- Q: Why is Roxio purchasing Napster’s Assets?
A: We feel that Napster has value that is synergistic with Roxio’s current digital media offerings and long-term vision for the future of digital media and entertainment.
Q: What filings have been submitted toward the proposed transaction?
A: Today, November 15, 2002, Napster will file a sale order motion with the Delaware bankruptcy court to sell Napster’s assets.
Q: When is the deal expected to close?
A: Closure is subject to the approval of the bankruptcy court, which is expected on November 27, 2002.
Q: What is the proposed purchase price?
A: Pursuant to the legal filings with the Delaware court, we have offered $5 million in cash and 100,000 warrants to purchase Roxio common stock.
Q: What are the terms of this deal?
A: Roxio will purchase substantially all of Napster’s assets, including the company’s intellectual property (several technology patents).
Q: Does Roxio inherit Napsters’ liabilities in this proposed transaction?
A: No, Roxio is not subject to any of Napster’s liabilities, including pending litigation.
Q: After the completion of the transaction, what is Roxio’s strategy for Napster?
A: Following the close of the transaction, we will provide consumers and investors a strategic vision of how Napster will expand Roxio’s role in the digital media landscape and enhance our offerings to consumers.