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Bertelsmann buys Napster

Bertelsmann has acquired Napster for US$8 million, according to c|net, ensuring the company’s sustainability for the near future. On Tuesday, Napster Chief Executive Konrad Hilbers resigned after Napster’s board rejected an offer to be bought out by Bertelsmann. Hilbers, as well as creator Shawn Fanning who also resigned at that time, will both remain with the company. The once high-flying file sharing service has struggled to reach agreements with record labels that would enable it to relaunch its service with a different business model. The company is rumored to have laid off the majority of its employees and has taken in virtually no income since it launched. Bertelsmann had already loaned the company some $85 million over the past two years.

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