Napster failed to finalize an acquisition by Bertelsmann AG, since CEO Konrad Hilbers has resigned. Source say that bankruptcy may be the next step, since the company has not been earning revenue.
Last year the Federal Court of San Franciso ordered the company to stop providing a means for pirating software and music. Since then Napster has been trying to come to agreements with Bertelsmann AG unsuccessfully.
A new version of the software was supposed to be developed once a deal was made with record labels that are suing the company. Sources say an internal memo indicates the ex-CEO's criticism of the Board of Directors decision not to allow the acquisition. http://www.msnbc.com/news/752155.asp