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Napster subscribers decline
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Posted by dan on: 2006-08-04 15:08:24 Article Viewed : 76
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Napster Inc. on Wednesday provided a disappointing outlook for its online music service and said its subscriber base had fallen 7 percent as it focused on promoting a new free Web site.
On a conference call with analysts, Chief Executive Officer Chris Gorog said he would not rule out a sale of the company.
"We do not have our heads in the sand regarding an M&A (merger and acquisition) transaction. We continue to receive a lot of interest in the company. We will always carefully weigh any valuation alternative against the opportunity and risk associated with continuing as a stand-alone company," Gorog told analysts on a conference call.
"Napster's still trying to find a working business model, which is bad from an operating standpoint. But we see an increased likelihood the company will consider a sale, especially since management mentioned it on the call," said Kit Spring, analyst with Stifel Nicolaus & Co Inc.
Napster reported a net loss of $9.8 million for the first fiscal quarter compared with a year-earlier loss of $19.9 million. Revenue rose to $28.1 million from $21 million.
Napster said its loss narrowed but its subscriber base fell 7 percent over the March quarter as it focused on its new free Web site.
Source Reuters
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