Court blocks Napster bid
2002-09-04 12:28
London - German media group Bertelsmann on Tuesday said a US court had blocked its bid for Napster, putting a stop to its planned purchase and spelling an almost certain end to the online music service.
Bertelsmann had agreed to pay $9 million to Napster creditors to buy its assets, but record labels and songwriters opposed the deal in court, saying it was not a fair price.
"We accept the court's decision that the sale of Napster's assets to Bertelsmann has been denied and that the purchase will not proceed," said a spokesperson for Bertelsmann's DirectGroup division, which was responsible for the Napster deal.
Faced with no financing, Napster could now be forced to cease operations and fire its staff, analysts said. Napster has been under bankruptcy protection.
- Reuters