Out-Law / Your Daily Need-To-Know

The assets of bankrupt file-sharing service Napster went up for auction on Friday. The asking price is $25 million and the auction will conclude on 27th August. According to reports from Reuters and Associated Press, the list of likely bidders includes media and record companies, music retailers and venture capitalists.

German media giant Bertelsmann has long expressed an interest in buying Napster’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.

It is possible that the bankruptcy judge will disregard some or all of the $85 million debt in which case Bertelsmann’s success at auction is far from guaranteed.

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