Thread: Napster Sucks
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Old 07-22-2008
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Default Napster Sucks

Napster's bank account is more valuable than the entire company, and that has hedge funds interested. According to Bloomberg, Napster has about $70 million in cash and investments, while the company's shares last week were worth about $52.1 million.Hedge funds are boosting their stake in Napster these days, eyeing the possibility of an outright sale. Napster shares jumped after the Bloomberg report came out, and are up more than 4% today to $1.45. The market cap is now up to $69 million.People watching Napster think it could be sold to JDS Capital Management, the hedge fund that owns eMusic.com. JDS bought 1 million shares of Napster but isn't commenting.Looks like Napster might be prettying itself up for a sale. The company slashed sales and marketing expenses by 90% to $18 million in its last fiscal year. That didn't help the company's business prospects much, but it bolstered the cash reserve.


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