German media conglomerate Bertelsmann has agreed to acquire Napster in a deal that will keep the controversial file-sharing service alive for the near future.
Napster CEO Konrad Hilbers and Shawn Fanning, Napster’s creator, will remain with the company.
On Tuesday Hilbers announced his resignation after Napster’s board of directors rejected a deal to be acquired by the German company. Fanning at that time also decided to leave the company, sources said.
Under Friday’s deal, Bertelsmann will pay $8 million to Napster’s creditors to acquire the company’s assets.
“We are very pleased to have reached an agreement with Napster’s board of directors,” Joel Klein, CEO of Bertelsmann, the service and legal arm of Bertelsmann AG, said in a statement.
“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 provide consumers more choice and control.”
