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Roxio Changes Name to Napster, Sells Software Business for $80 Million

Authored by Mark Hefflinger on August 10, 2004 - 3:17am.
Santa Clara, Calif. -- Roxio, a developer of CD and DVD burning software that is also the parent company of Napster, has announced that it will sell its software division to Sonic Solutions for $80 million, and will change its corporate name to Napster to emphasize its focus on the digital music business. The company reported that the digital media software division saw revenues of $22 million during the first quarter and income of $6 million. "Today's announcement of the planned sale of our software division will allow us to focus all of our efforts on Napster and the fast-growing online music market," said Roxio chairman and CEO Chris Gorog. "Subject to stockholder approval and standard regulatory reviews, this transaction will significantly enhance our balance sheet resulting in a net cash position well in excess of $100 million, which will support our efforts to drive subscriber growth and accelerate Napster's competitive position." In recent months, Roxio has launched versions of Napster in the U.K. and Canada, and also expanded its campus music service program.
tags: Napster | Roxio | Software Business |