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Napster pockets more Bertelsmann cash

Napster confirmed that it has received another round of funding from Bertelsmann, which sources familiar with the situation say is close to $25 million. Including a recent commitment to pay a $36 million bill from music publishers, the round brings Bertelsmann's ongoing Napster tab close to $125 million. The file-swapping company did not confirm figures but said "Bertelsmann did commit to a fixed amount of further funding, a portion of which was tied to our recent technology licensing deal." Bertelsmann's e-commerce division licensed a block of Napster technology last week but did not decide to use the core file-swapping service.

John Borland Staff Writer, CNET News.com
John Borland
covers the intersection of digital entertainment and broadband.
John Borland
Napster confirmed that it has received another round of funding from Bertelsmann, which sources familiar with the situation say is close to $25 million. Including a recent commitment to pay a $36 million bill from music publishers, the round brings Bertelsmann's ongoing Napster tab close to $125 million.

The file-swapping company did not confirm figures but said "Bertelsmann did commit to a fixed amount of further funding, a portion of which was tied to our recent technology licensing deal." Bertelsmann's e-commerce division licensed a block of Napster technology last week but did not decide to use the core file-swapping service.