PuNiShErKiLl666
July 26th, 2002, 09:59 AM
Bertelsmann to Acquire Assets and Provide Funds for Creditors as Part of Financial Reorganization
Hilbers, Fanning and Other Key Staff to Continue
REDWOOD CITY, CA and NEW YORK, NY - May 17, 2002 - Napster, Inc. and Bertelsmann AG today announced an agreement under which Napster will move forward with Konrad Hilbers as Chief Executive Officer and Shawn Fanning as Chief Technology Officer, with Bertelsmann purchasing the company’s assets.
Under the terms of the agreement, Bertelsmann will make available $8 million toward the payment of Napster’s creditors. Tuesday's Delaware Chancery court action, affirming the authority of Napster’s Board, paved the way for this agreement.
"We are very pleased to have reached an agreement with Napster’s Board of Directors," said Joel Klein, Chairman and CEO of Bertelsmann, Inc.
Klein continued, "We’re happy to see Napster move forward with Konrad Hilbers at the helm. We are very committed to providing artists the best possible distribution opportunities for their work, and to providing consumers more choice and control. Creating new ways of doing business is never easy, but Napster will be at the forefront of finding business models that respect copyright, reward artists, and deliver entertainment value to consumers. Peer to peer is a transforming technology and we’re proud to have Shawn Fanning continue to work on its development."
"Bertelsmann has had great foresight and vision to recognize the value of the online music community that formed around Napster, and they are the right company to help Napster move into the future," said Napster Board Member Hank Barry. "The strength of the idea of Napster has carried the company through many troubled waters and will ultimately lead to its success."
"I have believed from the start that this deal was a valid and beneficial deal for Napster, the best direction for the company under the current circumstances. While this has been a very unusual week, I’m pleased that I and my colleagues can move forward and give our full attention to Napster’s future," said Konrad Hilbers, CEO. In addition to resuming his duties as CEO, Hilbers will also chair Napster’s board of directors.
"Bertelsmann understood our vision when they first invested in us. They still believe in that vision," said Shawn Fanning. "I’m ready to work with the many talented people at Napster to complete the new service and get it off the ground."
Other executives who will rejoin the management team include Jonathan Schwartz, General Counsel, Claire Hough, VP of Engineering, David Phillips, VP of Napster Services and Product Management and Oliver Schusser, VP of Marketing. Continuing with the company will be Manus Cooney, VP of Corporate and Policy Development and Lyn Jensen, CFO.
About Napster
Napster is the company that pioneered person-to-person file sharing and created one of the most frequently downloaded software applications in the history of the Internet. Napster provides music enthusiasts with an easy-to-use, high quality service for discovering new music and communicating their interests with other members of the Napster community. The service enables users to locate and share music files, send instant messages to other users, and create Hot List bookmarks. In October 2000, Napster partnered with Bertelsmann AG to develop and membership-based service. Edel Music and TVT Records joined the alliance in January 2001. In June 2001, Napster became a MusicNet partner and signed a landmark distribution deal with the Association of Independent Music (AIM) and the Independent Music Companies Association (IMPALA), two organizations that represent hundreds of European independent record labels.
Hilbers, Fanning and Other Key Staff to Continue
REDWOOD CITY, CA and NEW YORK, NY - May 17, 2002 - Napster, Inc. and Bertelsmann AG today announced an agreement under which Napster will move forward with Konrad Hilbers as Chief Executive Officer and Shawn Fanning as Chief Technology Officer, with Bertelsmann purchasing the company’s assets.
Under the terms of the agreement, Bertelsmann will make available $8 million toward the payment of Napster’s creditors. Tuesday's Delaware Chancery court action, affirming the authority of Napster’s Board, paved the way for this agreement.
"We are very pleased to have reached an agreement with Napster’s Board of Directors," said Joel Klein, Chairman and CEO of Bertelsmann, Inc.
Klein continued, "We’re happy to see Napster move forward with Konrad Hilbers at the helm. We are very committed to providing artists the best possible distribution opportunities for their work, and to providing consumers more choice and control. Creating new ways of doing business is never easy, but Napster will be at the forefront of finding business models that respect copyright, reward artists, and deliver entertainment value to consumers. Peer to peer is a transforming technology and we’re proud to have Shawn Fanning continue to work on its development."
"Bertelsmann has had great foresight and vision to recognize the value of the online music community that formed around Napster, and they are the right company to help Napster move into the future," said Napster Board Member Hank Barry. "The strength of the idea of Napster has carried the company through many troubled waters and will ultimately lead to its success."
"I have believed from the start that this deal was a valid and beneficial deal for Napster, the best direction for the company under the current circumstances. While this has been a very unusual week, I’m pleased that I and my colleagues can move forward and give our full attention to Napster’s future," said Konrad Hilbers, CEO. In addition to resuming his duties as CEO, Hilbers will also chair Napster’s board of directors.
"Bertelsmann understood our vision when they first invested in us. They still believe in that vision," said Shawn Fanning. "I’m ready to work with the many talented people at Napster to complete the new service and get it off the ground."
Other executives who will rejoin the management team include Jonathan Schwartz, General Counsel, Claire Hough, VP of Engineering, David Phillips, VP of Napster Services and Product Management and Oliver Schusser, VP of Marketing. Continuing with the company will be Manus Cooney, VP of Corporate and Policy Development and Lyn Jensen, CFO.
About Napster
Napster is the company that pioneered person-to-person file sharing and created one of the most frequently downloaded software applications in the history of the Internet. Napster provides music enthusiasts with an easy-to-use, high quality service for discovering new music and communicating their interests with other members of the Napster community. The service enables users to locate and share music files, send instant messages to other users, and create Hot List bookmarks. In October 2000, Napster partnered with Bertelsmann AG to develop and membership-based service. Edel Music and TVT Records joined the alliance in January 2001. In June 2001, Napster became a MusicNet partner and signed a landmark distribution deal with the Association of Independent Music (AIM) and the Independent Music Companies Association (IMPALA), two organizations that represent hundreds of European independent record labels.