BUSINESSWEEK ONLINE : NOVEMBER 13, 2000 ISSUE
COVER STORY The Deal TERMS Bertelsmann lends Napster $50 million with an option for an equity stake. Napster uses the money to develop technology designed to get users to pay for music they download from the Net. Bertelsmann withdraws suit against Napster and lobbies other music companies to do the same. IMPACT Napster turns from renegade to royalty generator. File-sharing becomes new business model for media companies. RISKS Rival music companies refuse to withdraw suit against Napster, and court puts Napster out of business. DATA: BUSINESS WEEK _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _					RELATED ITEMS Bertelsmann: A New Net Powerhouse? COVER IMAGE: A New Net Powerhouse? TABLE: The Deal TABLE: The Building Blocks of Bertelsmann TABLE: Dueling Net Strategies The Man behind Project Thunderball Commentary: Napster: Tune In, Turn On, Pay Up ONLINE EXTRA: Middelhoff: ``Somebody Has to Take the Lead'' INTERACT E-Mail to Business Week Online

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