Digital media company Roxio, Inc., billed as the provider of the "best selling digital media software in the world," has entered into a definitive agreement to acquire substantially all of the assets of Napster. Roxio has offered $5 million in cash and 100,000 warrants to purchase Roxio common stock. As part of the transaction, Roxio will receive all of Napster's intellectual property including its technology patent portfolio. Roxio is not assuming any of Napster's liabilities, including pending litigation. Roxio's purchase of Napster's assets is subject to approval of the bankruptcy court, expected November 27.
"Roxio's acquisition of Napster will expand our role in the digital media landscape and enhance our offerings to consumers," said Roxio President/CEO Chris Gorog . "We look forward to continuing to work with our partners in the entertainment industry and will be announcing further plans in the coming months."