The company founded by Napster cofounder Shawn Fanning has been for sale for months.
Snocap might have axed half its workforce last year, but still, the Shawn Fanning-founded company had developed technology appealing to the social-media network.
Rusty Rueff says laying off 31 employees, or 54 percent of company's staff, was necessary to attract potential buyers.
The music-licensing company says the cutbacks are part of a plan to "refocus resources."
Napster founders Parker and Shawn Fanning unveil a Web video chat service designed to take up where Chatroulette left off. The launch is long on glitter, but the tech demo was far too buggy.
After years of negotiations, online CD seller CD Baby signed a digital distribution deal with Snocap. Nobody benefitted.
Longtime employee and prominent marketing spokesman plans to launch an as-yet-unnamed new company with original Napster creator Shawn Fanning.
Although new services like Spotify and Rdio offer users the ability to legally listen to vast collections of music at no cost, Napster's founders lament that music sharing today is still behind 1999.
Warner Music has reached a settlement with music-sharing service Imeem. Could legal music-sharing services finally be poised to take off?
After years known mostly for creating Napster, Fanning may finally have hit the financial jackpot.