As part of the transaction, which is subject to approval by the
US bankruptcy court, Roxio will receive all of Napster's assets and
intellectual property rights, including its technology patent
portfolio. The deal, however, would leave the company free of
Napster's liabilities, including pending litigation.
Although further details of the deal were not disclosed, it is
expected that Roxio plans to integrate Napster with its media
distribution services. Roxio said in a statement that Napster is
synergistic with its CD-burning technology.
The bankruptcy court is expected to announce its decision on
27th November. In the meantime, other parties have the opportunity
to update their bids.
In September, the bankruptcy court blocked the sale of Napster
to German media giant Bertelsmann, which had offered $9 million for
the assets. The decision followed concerns that the proposal had
not been made in good faith.
