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 agreementunder which Napster will move forward with Konrad Hilbers asChief Executive Officer and Shawn Fanning as Chief TechnologyOfficer, with Bertelsmann purchasing the company's assets.
Under the terms of the agreement, Bertelsmann will makeavailable $8 million toward the payment of Napster's creditors.Tuesday's Delaware Chancery court action, affirming theauthority of Napster's Board, paved the way for this agreement.
"We are very pleased to have reached an agreement withNapster's Board of Directors," said Joel Klein, Chairman and CEOof Bertelsmann, Inc.
Klein continued, "We're happy to see Napster move forwardwith Konrad Hilbers at the helm. We are very committed toproviding artists the best possible distribution opportunitiesfor their work, and to providing consumers more choice andcontrol. Creating new ways of doing business is never easy, butNapster will be at the forefront of finding business models thatrespect copyright, reward artists, and deliver entertainmentvalue to consumers. Peer to peer is a transforming technologyand we're proud to have Shawn Fanning continue to work on itsdevelopment."
"Bertelsmann has had great foresight and vision to recognizethe value of the online music community that formed aroundNapster, and they are the right company to help Napster moveinto the future," said Napster Board Member Hank Barry. "Thestrength of the idea of Napster has carried the company throughmany troubled waters and will ultimately lead to its success."
"I have believed from the start that this deal was a validand beneficial deal for Napster, the best direction for thecompany under the current circumstances. While this has been avery unusual week, I'm pleased that I and my colleagues can moveforward and give our full attention to Napster's future," saidKonrad 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 investedin us. They still believe in that vision," said Shawn Fanning."I'm ready to work with the many talented people at Napster tocomplete the new service and get it off the ground."
Other executives who will rejoin the management team includeJonathan Schwartz, General Counsel, Claire Hough, VP ofEngineering, David Phillips, VP of Napster Services and ProductManagement and Oliver Schusser, VP of Marketing. Continuingwith the company will be Manus Cooney, VP of Corporate and PolicyDevelopment and Lyn Jensen, CFO.
ots Original Text Service: Bertelsmann AG Im Internetrecherchierbar: http://www.presseportal.de
Contact: For Napster: mPRm Public Relations Julie GladdersPhone:310 890-4559
mPRM Public Relations Paul Breton Phone:323-933-3399Mailto: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: 0049-524180 42041 Mobile phone: 0173-705 8134Mailto:gerd.koslowski@bertelsmann.de
USA: Paula Batson Phone: 212-930-4531Mailto:paula.batson@bmgdirect.com
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