Napster Shareholders' Plan To Save Company: Put Themselves On The Board (NAPS)

Napster is in a tough spot: Still losing money, unable to get any traction for its core subscription service, hoping against hope that selling DRM-free downloads will somehow give it a lift.

Perry Rod think he has the solution: Put him and two of his buddies on the Napster board. Who is Perry, and who are his fellow board nominees? From the SEC filing announcing their candidacy:

  • Perry is an “independent professional investor” from Encino. He’s also president of Market Rap, which he says is developing a “collaborative community website for investors” and is chairman of something called The Paradise Project, a “non-profit religious organisation”. He has “performed professionally as a musician in the Los Angeles area.” He’s 29.
  • Thomas Sailors manages Cloverdale Investments LLC, his personal holding company. He was an MD at Banc of America Securities and put in stints and Morgan Stanley and Merrill Lynch. He’s 49.
  • Kavan Singh owns and operates 10 Cold Stone Creamery stores. He’s 26.
  • Collectively the three crusaders own 483,180 shares of NAPS — about 1.1% of shares outstanding. Thomas owns almost all of the group’s holding — 401,000 shares.

Well, good luck with that. But if Perry and pals do get on the board, here’s what Napster CEO Chris Gorog can expect to hear about — “specific areas of immediate concern include, but are not limited to”:

1) positioning, developing, and perhaps transforming, the Napster
brand with a strategy that better explains and promotes the value
proposition, 2) further development of an in-home music solution with
additional AV hardware manufacturing partners, 3) capturing the
attention of adult music consumers who wish to avoid piracy and could
benefit from multiple family members on subscription, 4) utilising
the viral effects of social networking combined with streaming to
promote the brand and the value proposition, 5) better utilization of
relatively inexpensive but creative marketing opportunities available
in today’s internet marketplace, and 6) cost effective outsourcing

See Also: DRM-Free Store? Who Cares: Napster Still Screwed

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.