San Francisco - Snocap, the digital music licensing company started by Napster founder Shawn Fanning, has laid off 60% of its staff, and is pursuing talks with several interested suitors, CNET News.com reported.

"Snocap has received interest from several companies and is pursuing that," company spokesperson Susan Celia Swan told News.com.

Valleywag first posted news of the layoffs and potential sale, citing an anonymous source.

Founded in 2002, Snocap provides digital music licensing services, and also powers online music stores on sites including MySpace.

The company says over 80,000 artists have created Snocap MyStores, which allow them to sell directly to fans and set their own prices, and that the service counts over 175,000 registered consumers.

MyStores counted upwards of 20 million unique visitors in September.

Related Links:
http://www.news.com/8301-10784_3-9796327-7.html

http://tinyurl.com/ywws4g (Valleywag)

http://www.snocap.com