Napster might consider selling itself as it struggles to compete with digital music stores online

Napster might consider selling itself as it struggles to compete with digital music stores online

Napster has just reported that they are losing their customer base to rival services. The company also recently launched an ad-supported free music subscription service to bring in more subscribers.

However, things are not going well. The company has now said that they are even considering the possibility of selling itself to a prospective buyer.

Napster was one of the first services to allow file sharing on the internet. However, it faced massive legal hassles, as most of the songs traded on it were illegal. It later on turned into a legal digital music subscription service. However, popularity of Apple iTunes and other rival stores did not allow them to flourish much.

Napster Chief Executive Chris Gorog said in a statement on the new developments: “We continue to receive a lot of interest in the company and would like to assure our investors that we will always carefully weigh any value creation alternatives against the opportunity and risk associated with continuing as a stand-alone company.”

He further said: “We believe we have created substantial value that is not reflected in our share price and it is our number one priority to release that value through the execution of our business plan, or by aligning with a strategic partner which we will always consider with seriousness as we represent our shareholders.”