Three investors have begun a fight to get elected to Napster’s board of directors so they can push for a sale of the digital music company, according to the Los Angeles Times. They claim that Napster’s current management is incompetent and busy enriching itself, and should try harder to find a buyer.
“Napster should be exploring all possible avenues of maximizing stockholder value, including a sale,” the investors said Thursday in a letter to the Securities and Exchange Commission. “The actions taken by the current board have made that option extremely difficult for potential acquirers.” Napster has declined to comment.
Recently, the company has positioned itself next to Amazon in selling unprotected MP3 tracks, which was a positive move, but years of treading water with its mediocre subscription service has brought it no closer to catching Apple. Earlier reports have already called the company takeover bait.