Napster Said It Raised $3B from an Investor. Now 'Investor' and 'Money' Are Gone
18 hours ago
- #Napster
- #Investment Scandal
- #Securities Fraud
- Napster CEO John Acunto informed shareholders that a promised $3.36 billion investment at a $12 billion valuation would not materialize.
- The company described itself as a 'victim of misconduct' and is assisting law enforcement with investigations.
- Napster has a history of failed tender offers, with this being the fourth since 2022.
- Forbes raised concerns about Napster's funding claims, uncovering lawsuits, exaggerated partnerships, and questionable investor claims.
- Napster's convoluted history includes acquisitions of multiple companies, rebranding, and financial controversies.
- The company faced layoffs, executive departures, and legal challenges, including lawsuits from creditors and Sony.
- Napster worked with brokers and advisors with regulatory troubles to raise capital.
- Potential securities fraud concerns arise if Napster knowingly misrepresented its financial situation.
- SEC and DOJ are investigating Napster, though the company is not the target of the DOJ's probe.