Roxio Bids $5M For Napster AssetsRoxio Bids $5M For Napster Assets

Software maker Roxio says it plans to buy Napster's assets for $5 million in cash, if a bankruptcy court approves the deal this week.

Roxio, which makes software for CD and DVD burning and photo and video editing and has annual revenue of $142.5 million, could use Napster's technology to build a subscription-based online music-downloading service featuring songs from major record labels, analysts say. Roxio this month licensed EMI Music's song catalog. "Napster was looking to launch a service, so anyone purchasing its assets would clearly be likely to continue with that business model," says Lee Black, an analyst at Jupiter Research.

Roxio, which won't take on Napster's liabilities, including pending litigation from record labels, declined interview requests.