The company also said that it cut a deal to provide music to Virgin Digital’s music customers in the U.S., replacing Virgin’s own paid music subscription service.
Darren Aftahi, an analyst with ThinkEquity Partners, said the increase in subscribers was in-line with his previous expectations. While he has a Buy rating on the stock, Aftahi says the stock isn’t likely to move much until the company shows solid subscription growth from its mobile channel, or “M&A talks heat up.”
Back in September, the company announced that it had hired UBS “in response to recent third party interest in establishing strategic partnerships or potentially acquiring the company.” Since then, there have been no updates from the company, and the stock has come back to roughly where it was at the time of the UBS announcement after briefly running up close to $5, which makes you think nothing is happening…but who knows?
Aftahi thinks the company could be worth $5-$7 a share in a takeover.
Napster will report December quarter results on February 8.
Napster shares gained 5 cents today, 1.31%, to a closing price of $3.87.
NAPS 1-yr chart:
