Los Angeles - Napster (NASD: NAPS) has hinted that the company is up for sale again, saying in its response to a dissident shareholder group that the company is once again exploring possible strategic alternatives, and has retained UBS Investment Bank to assist in the process. The company hired UBS two years ago to explore a possible sale, but no deal emerged. Napster informed shareholders of the move in a letter that also said the company believes that three proposed dissident board candidates are "unqualified."

The company said the dissident candidates "have offered no specific business plan, other than suggesting a vague review of Napster's business," and also "have no significant ownership in Napster and, in fact, have been frequent sellers of Napster stock."

Napster instead urged shareholders to re-elect its current slate of independent directors.

The company recently hatched a summer promotion that saw it cut the price of a six-month subscription by nearly 50%.

Napster also recently terminated its nationwide Napster on Campus program, which offered students and faculty at participating schools discounted rates on its service.

Related Links:
http://www.businesswire.com/news/home/20080829005078/en

http://investor.napster.com/secfiling.cfm?filingid=1144204-08-50436

http://snipurl.com/3l2g0 (Silicon Alley Insider)

http://snipurl.com/3l2ek (Napster on Campus)