A group of songwriters and music publishers has filed an
objection to the planned purchase of Napster’s assets by German
media giant Bertelsmann, according to a report by the Los Angeles
Times. The objection will be discussed at a hearing over the
Bertelsmann offer, scheduled for today in a federal bankruptcy
court in Delaware.
German media giant Bertelsmann has long expressed an interest in
buying the bankrupt file-sharing service’s assets. It recently
upped its bid by $9 million, bringing its total bid to over $100
million. However, included in that figure is the sum of $85 million
in debts owed by Napster to Bertelsmann.
According to the LA Times report, the songwriters are objecting
to the transaction because of Bertelsmann’s dominant position and
Napster’s “unlawful actions”, and are claiming that the $85 million
should not be included in the bid.
Napster’s creditors failed to find other party to offer the
asking price of $25 million.
