Friday, October 20, 2006

Napster on the Block: Online music service has put itself on the auction block and isn’t lacking for buyers.

by P. Galapati
published October 16, 2006

LOS ANGELES - Speculation that online music service Napster is heading for a buyout heated up Monday after an analyst issued a research note that the company could soon get acquired.

Darren Aftahi, an analyst with ThinkEquity Research Partners, said some 10 to 15 companies could be looking to buy Napster. Potential buyers could include rival online music services, digital music hardware manufacturers, or a content company.

“An acquirer with a broader reach or audience makes the most sense in our view, as it would be able to leverage its scale to exploit the value of Napster’s assets more readily than Napster could as a standalone entity,” said Mr. Aftahi in his research note.

Buyers could include Yahoo Music, RealNetworks’ Rhapsody music service, AOL,, IAC/InterActiveCorp, Google, Sony, or Samsung, said analysts.



Post a Comment

Links to this post:

Create a Link

<< Home