We knew that record labels were out to kill Napster and it almost worked with the troubled file sharing company headed towards bankruptcy and an exodus by the company�s executives. Well for a twist in the story, it is a record company that has stepped in with a financial life preserver to keep the company afloat. 

Just three days after Napster Chief Executive Konrad Hilbers and founder Shawn Fanning announced their resignations, they were lured back into the company by an $8 million dollar infusion of cash from the German media giant, Bertelsmann Entertainment Group. 

 The $8 million dollar deal will enable the company to pay their creditors and avoid bankruptcy with the ultimate goal of relaunching as a paid subscription service. Napster shut down their servers last July in the midst of their legal battles with the major record label�s trade association the Recording Industry Association of America (RIAA). 

"Creating new ways of doing business is never easy," Bertelsmann Chairman and Chief Executive Joe Klein said, "but Napster will be at the forefront of finding business models that respect copyright, reward artists and deliver entertainment value to consumers."

"Bertelsmann understood our vision when they first invested in us," said Napster founder Sean Fanning following this latest BEG investment. "They still believe in that vision. I'm ready to work with the many talented people at Napster to complete the new service and get it off the ground."

Napster Chief Executive Konrad Hilbers agreed with Fanning, "I have believed from the start that this deal was a valid and beneficial deal for Napster, the best direction for the company under the current circumstances,� Said Hilbers. �While this has been a very unusual week, I'm pleased that I and my colleagues can move forward and give our full attention to Napster's future." 

The question still remains will the millions of online citizens who used the Napster service be willing to pay a fee with so many Napster clones available that still allow for the free swapping of MP3 music files. 
 

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