NEW YORK (Hypebot) – With a sub $2 stock price but cash on hand of nearly $70 million, Napster has become an attractive target for firms like JDS Capital Management, the hedge fund that owns eMusic and most of The Orchard. JDS bought 1 million shares of Napster in the first quarter.
Anticipating a takeover, Munder Capital Management which oversees $30.9 billion increased its Napster holdings by 36% as of March 31st. "The valuation's absolutely dirt cheap,'' Munder's Ken Smith told Bloomberg. “The scenario that provides the highest value for shareholders is a sale to a strategic buyer (like JDS)."
