According to Vunet, Napster admitted yesterday that it is considering putting itself up for sale.
The music network has retained UBS Investment Bank to evaluate options in response to recent third-party interest in establishing strategic partnerships or potentially acquiring the company. Chris Gorog, chairman and chief executive at Napster, said: "Napster is in a strong position to continue aggressively building our business as an independent company."
Nand Gangwani, the company's chief financial officer, added that Napster has a balance sheet with a cash position of $97m as of the close of the first quarter and annual revenues in excess of $100m.
For the second half of fiscal 2006, the firm projects an increase in subscription growth from a base of more than half a million subscribers. The company also plans to launch in Japan this year.
Napster has not set a definitive timetable for completion of its evaluation, and explained that there can be no assurances that the evaluation process will result in any specific action.