Deal Breathes New Life into Napster / Bertelsmann to Acquire Assets and Provide Funds for Creditors as Part of Financial Reorganization / Hilbers, Fanning and
18.05.2002, 08:59
REDWOOD CITY, CA / NEW YORK, NY / GUETERSLOH 18. 5. 2002 (ots)
- Napster, Inc. and Bertelsmann AG today announced an agreement
under which Napster will move forward with Konrad Hilbers as
Chief Executive Officer and Shawn Fanning as Chief Technology
Officer, with Bertelsmann purchasing the company's assets.
Under the terms of the agreement, Bertelsmann will make
available $8 million toward the payment of Napster's creditors.
Tuesday's Delaware Chancery court action, affirming the
authority of Napster's Board, paved the way for this agreement.
"We are very pleased to have reached an agreement with
Napster's Board of Directors," said Joel Klein, Chairman and CEO
of Bertelsmann, Inc.
Klein continued, "We're happy to see Napster move forward
with Konrad Hilbers at the helm. We are very committed to
providing artists the best possible distribution opportunities
for their work, and to providing consumers more choice and
control. Creating new ways of doing business is never easy, but
Napster will be at the forefront of finding business models that
respect copyright, reward artists, and deliver entertainment
value to consumers. Peer to peer is a transforming technology
and we're proud to have Shawn Fanning continue to work on its
development."
"Bertelsmann has had great foresight and vision to recognize
the value of the online music community that formed around
Napster, and they are the right company to help Napster move
into the future," said Napster Board Member Hank Barry. "The
strength of the idea of Napster has carried the company through
many troubled waters and will ultimately lead to its success."
"I have believed from the start that this deal was a valid
and beneficial deal for Napster, the best direction for the
company under the current circumstances. While this has been a
very unusual week, I'm pleased that I and my colleagues can move
forward and give our full attention to Napster's future," said
Konrad Hilbers, CEO. In addition to resuming his duties as CEO,
Hilbers will also chair Napster's board of directors.
"Bertelsmann understood our vision when they first invested
in us. They still believe in that vision," said Shawn Fanning.
"I'm ready to work with the many talented people at Napster to
complete the new service and get it off the ground."
Other executives who will rejoin the management team include
Jonathan Schwartz, General Counsel, Claire Hough, VP of
Engineering, David Phillips, VP of Napster Services and Product
Management and Oliver Schusser, VP of Marketing. Continuing
with the company will be Manus Cooney, VP of Corporate and Policy
Development and Lyn Jensen, CFO.
ots Original Text Service: Bertelsmann AG Im Internet
recherchierbar: http://www.presseportal.de
Contact: For Napster: mPRm Public Relations Julie Gladders
Phone:310 890-4559
mPRM Public Relations Paul Breton Phone:323-933-3399
Mailto:pbreton@mprm.com
TSD Communications Ricki Seidman Phone: 202-986-0033 ext.
111 Mailto: rseidman@tsd.biz
For Bertelsmann: Liz Young Phone: 212-782-1120 Mailto:
youngeliz@aol.com
For DirectGroup Bertelsmann: Gerd Koslowski Phone: 0049-5241
80 42041 Mobile phone: 0173-705 8134
Mailto:gerd.koslowski@bertelsmann.de
USA: Paula Batson Phone: 212-930-4531
Mailto:paula.batson@bmgdirect.com
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