By hiring UBS Investment Bank to ‘evaluate strategic alternatives’, it would seem that the for sale sign has firmly been posted by Napster. A sales is seemingly inevitable given that the company has stalled at half a million subscribers, losing money every quarter and is shoring up value by giving away digital audio players with new subscriptions.

Now is a good time to call it quits with the launch of Microsoft’s Zune likely to eat away existing non-iTunes digital music consumers when it launches in the US in December and the UK in April of 2007 and brand value still remaining high.

Formed out of the ashes of Pressplay and MP3.com, Napster offers a good service but lacks the marketing clout to sell the subscription story long-term and not burn through its remaining $97 million in the bank.

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