AfterDawn: Tech news

Roxio sells software division

Written by Jari Ketola @ 10 Aug 2004 7:29 User comments (2)

Roxio sells software division Software company turned music business Roxio on Monday announced that it would sell its consumer software division for $80 million and put all focus on the Napster online digital music store.
Roxio, known for software titles such as Easy Media Creator and Toast, plans to change its name to Napster. Less than a year ago Roxio was still best known for its recording solutions. Now it seems they want to dissociate themselves from the image and avoid confusion by changing the name altogether.

"With the successful completion of the transaction, Napster will emerge as a well-positioned pure-play in the fast-growing digital music sector with a substantially enhanced balance sheet that will support our growth plans," said Chris Gorog, Roxio's chairman and chief executive officer.

The software division will be sold to Sonic Solutions. Under the terms of the deal, Sonic will purchase essentially the entire Roxio software operation including Roxio's CD and DVD recording, authoring, photo and video editing application products including Easy Media Creator, PhotoSuite, VideoWave, Easy DVD Copy and Toast. Sonic expects to retain most of the current employees of the Roxio organization. Sonic intends to continue the Roxio brands, and current distribution and OEM relationships.

Source: Sonic press release

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2 user comments

110.8.2004 7:35

wow :| i cant belive napster would have ever been makin anyone money

210.8.2004 23:48

Next Afterdawn Headline about Roxio... Roxio files bankruptsy. In one of the worst corporate blunders in US history, crappy software maker Roxio has gone out of business. In a bid to harness the branded potential of Napster, Roxio placed all their assets into the flegdling music selling brand. With the lack of profits rolling in, and the money from the software arm sell gone, Roxio filed for Bankruptsy. The company's offical statement reads in part, "Online music piracy prevented us from gaining in the market like we would have if people were honest. We made the mistake of trusting americans to do the right thing and buy our DRM riddled, low quality music. We now know that higher quality at a lower price, from companies that dont deal with the RIAA is actually what the consumer wanted."

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