Roxio sells software core, adopts Napster shell

[MacBytes]

Category: 3rd Party Software
Link: Roxio sells software core, adopts Napster shell (http://www.macbytes.com/link.php?sid=20040809214944)
Posted on MacBytes.com (http://www.macbytes.com)

Approved by Mudbug

[jsw]

Good God, they've lost their minds! Fortunately, looks like Toast will be OK, as "most" of the workers have been brought over to Sonic Solutions, which, BTW, sounds like the name of a company that should merge with Napster....

[stoid]

Is Roxio entering an Amelio Era (http://www.apple-history.com/frames/body.php?page=history&section=h6)? :eek:

[snahabed]

Woah, Roxio is drinking the kool-aid!!

Are they even making money? Why sell off what is considered the industry-leading burning solution to keep the industry-trailing, low-profit music service??

I bet they are setting themselves up to look better to Microsoft as a buyout opportunity.

[iMeowbot]

Great news! This spares the good product lines from going down with the ship if the music venture implodes.

[Sun Baked]

There must be some insanity in the market, because Boise Cascade Corporation (NYSE: BCC) -- our big/old US forest product company decided to see off the core businesses to a private group and focus soley on it's recently acquired unit OfficeMax.

Roxio is doing the same thing, killing off core business to focus on horse that that what it think will rocket the company to stardom.

Quite often these decision explode, since the core business while being a drag on earning oftentimes save the company in bad times.

[Chip NoVaMac]

I had to check the date. Thought it might be April 1st.

I guess this will be studied in business schools a decade from now for the bonehead awards.

With all these businesses selling their core buisness, will Apple be next to sell off their computer division? :eek:

[michaelrjohnson]

This seems almost too stupid to be true...

But they must have *very* high hopes for thier music d/l model. Unless they have something very big up thier sleeves, I think they may be in trouble. (What is their motivation? Is it an iTMS-breaker?)

[Chip NoVaMac]

This seems almost too stupid to be true...

But they must have *very* high hopes for thier music d/l model. Unless they have something very big up thier sleeves, I think they may be in trouble. (What is their motivation? Is it an iTMS-breaker?)

Well, given their deals with some universities, one has to wonder what they know that others don't.

[jettredmont]

Category: 3rd Party Software
Link: Roxio sells software core, adopts Napster shell (http://www.macbytes.com/link.php?sid=20040809214944)
Posted on MacBytes.com (http://www.macbytes.com)

Approved by Mudbug

Hmm. Well, the deal looks a little different than it is being characterized here. Aside from the legal maneuverings, which were likely required for Roxio/Napster/whatever to keep their ongoing contracts (often a no-spinoff clause is in long-term contracts), essentially what is happening is this:

1) Roxio sees Napster isn't getting anywhere fast despite tons of marketing deals and ads.
2) Sonic wants Roxio but not Napster (see 1).
3) Roxio spins off Napster as a separate company
4) Sonic buys the remainder of Roxio

Again, that's not how the legal documents will put it, but that's what's happening.

This is NOT a vote of confidence for Napster. In fact, it is the exact opposite. It is rarely a Good Thing when a company's core business and their experimental business become separated; one will survive and the other will likely not. You don't amputate a working limb.

[Sun Baked]

Well here's another announcement from today for strange corporate decisions.

The big announcement is that they're planning on unlocking shareholder value in Toys R Us.

In other word Toys R Us may sell off the core retail business unit (ie, the Toys R Us toy stores).

[zwida]

Well, given their deals with some universities, one has to wonder what they know that others don't.

Well, OK, but doesn't one also have to wonder how long these "deals" are going be worth anything. I mean, the headline could pretty much read, "Man sells internal organs, adopts corpse."