As BMG was reported to being losing interest in its online businesses, a court in the US has refused the company permission to takeover complete control of struggling file-share website Napster – the result being the firing of the company's remaining 42 staff. Judge Peter J. Walsh at a Delaware bankruptcy court said that BMG couldn't buy the company's assets because Napster's chief executive, Konrad Hilbers (a former BMG boss), had "divided loyalty" between the two companies. The news, which many see as the final straw for the former flagship download site, follows months of legal wranglings, declinging support from BMG, and internal feuds that led to many original staff, including founder Shawn Fanning, walking out.
Sep 4, 2002
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1 min read
Court blocks BMG takeover of Napster, staff fired
A US bankruptcy judge has refused BMG full control of Napster, leading to the firing of the remaining 42 staff.