As part of the transaction, which is subject to approval by the US bankruptcy court, Roxio will receive all of Napster's assets and intellectual property rights, including its technology patent portfolio. The deal, however, would leave the company free of Napster's liabilities, including pending litigation.
Although further details of the deal were not disclosed, it is expected that Roxio plans to integrate Napster with its media distribution services. Roxio said in a statement that Napster is synergistic with its CD-burning technology.
The bankruptcy court is expected to announce its decision on 27th November. In the meantime, other parties have the opportunity to update their bids.
In September, the bankruptcy court blocked the sale of Napster to German media giant Bertelsmann, which had offered $9 million for the assets. The decision followed concerns that the proposal had not been made in good faith.