BusinessBusiness RecoveryMusic to stop playing at Napster

Music to stop playing at Napster

Controversial music-swapping website Napster is facing liquidation after a US court blocked its sale to German media giant Bertelsmann.

Link: How to spot that hi-tech flop

The German company had agreed to pay $9m to Napster’s creditors, as the internet company has already filed for Chapter 11 bankruptcy protection.

The company is being plagued by lawsuits from the big record labels, who said Napster’s free song-swapping service infringed copyright and stopped artists from getting royalties from their work. The site was temporarily shut down last year and Napster tried to reinvent itself as a legitimate subscription online music provider.

Bertlesmann, which had wanted to relaunch Napster later this year, said it would not appeal against the Court’s decision. The German company’s chief executive Konrad Hilbers told the BBC: ‘The purchase process will not proceed,’ and Napster would be forced into ‘Chapter 7 liquidation’.

Without financing, revenues, and other potential buyers Napster, which at its height counted more than 70 million users, will be forced to shut down for good. But the days of swapping free music on the internet are not over as other file-sharing software such as Kazaa, Audiogalaxy and Morpheus continues to attract users.

Related Articles

EY hired by Carillion to review finances

Accounting Firms EY hired by Carillion to review finances

3m Alia Shoaib, Reporter
Using insolvency as a debt recovery tool

Business Recovery Using insolvency as a debt recovery tool

4m Emma Smith, Managing Editor
UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

Business Recovery UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

6m Alia Shoaib, Reporter
Manor Racing Formula One team company enters administration

Business Recovery Manor Racing Formula One team company enters administration

9m Stephanie Wix, Writer
Oil and gas sector insolvencies hit “new high”

Accounting Firms Oil and gas sector insolvencies hit “new high”

9m Stephanie Wix, Writer
Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

Business Recovery Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

7m Emma Smith, Managing Editor
FRP Advisory expands operation with new office, partner appointments

Accounting Firms FRP Advisory expands operation with new office, partner appointments

8m Emma Smith, Managing Editor
Business confidence drops to second lowest level since 2011

Business Recovery Business confidence drops to second lowest level since 2011

9m Stephanie Wix, Writer