Napster Shares Quite a Bargain
Bloomberg's Don Jeffrey has an excellent article on Napster's low stock price and financial woes. The company's market cap is so low -- currently about $18 million less than its cash holdings -- that it has become a prime target for a takeover. Some investors are snapping up shares in anticipation of an acquisition.
RealNetworks is a potential bidder and could certainly stand to add some or all of Napster's 760,000 customers to its Rhapsody service. But the company currently has different plans to grow its subscriber base. Rhapsody will spend $50 million -- or just $8 million less than Napster's market value -- to promote its "Music Without Limits" campaign that showcases its mobile service, PC-based services and MP3 store.
Music Groups