Roxio to become NapsterPosted 11/08/2004
Roxio has announced that it is planning to sell its consumer software division for $80 million and change its name officially to Napster.
Roxio has agreed to sell its software division to Sonic Solutions. The firm makes Toast Titanium CD and DVD burning software and Jam audio mixing software for the Macintosh, as well as Easy Media Creator and other titles for Windows. Napster's parent company claimed it would focus wholly on its digital music business in the future.
Roxio bought file-swapping firm Napster out of bankruptcy two years ago and relaunched the service last Christmas as a paid digital music download and subscription site.
Napster is now generating around $7.9 million a quarter, and is expected to make $30 million to $40 million during its first fiscal year. The download site is a direct competitor of Apple Computer's iTunes.
Roxio announced its plans when posting its quarterly financial results this week, although the deal with Sonic Solutions is subject to the customary regulatory and shareholder approval.
The company reported $29.9 million in net revenue for the first fiscal quarter ending June 30th, compared to $24.2 million for the same quarter last year. Roxio's net loss for the quarter was $2.6 million, compared with a net loss of $370,000 during the same period a year ago, ahead of analysts' expectations. © DeHavilland Information Services plc
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