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12: the coup

289 He reasoned that Bertelsmann would have a better chance According to interviews with Middelhoff, Hilbers, and others close to the process.

290 Hummer Winblad had insisted on that proxy According to interviews and an e-mail from Barry to Napster directors before the deal closed. Other big investors also had to pledge to vote their shares as the board instructed on major decisions.

291 Hummer Winblad won what is known as a liquidation preference The terms of the various preferences were described in interviews with Barry and other Napster investors.

291 would get nothing at all for their Series A Junior According to legal papers filed in John Fanning v. John Hummer and Hank Barry, Delaware Chancery Court for New Castle County, case number 19500 NC.

291 Bertelsmann Direct Group CFO Bill Sorenson The deposition was filed as an exhibit in Napster’s bankruptcy.

292 he repudiated the conversion According to Amram’s deposition in John Fanning v. John Hummer and Hank Barry, Delaware Chancery Court for New Castle County, case number 19500 NC.

293 He called both his nephew The descriptions of Fanning’s calls were from the recipients.

294 Caught in traffic on U.S. 101 Partially the author’s fault; I was driving and picked a bad exit.

295 Fanning filed a lawsuit in Delaware’s Chancery Court John Fanning v. John Hummer and Hank Barry, Delaware Chancery Court for New Castle County, case number 19500 NC.

295 The Los Angeles Times promptly identified On March 28, 2002. Available at http://www.latimes.com.

300 Napster filed for Chapter 11 bankruptcy in Delaware In re Napster Inc., et al., case number 02-11573.

302 “that left me with Joel Klein” From Hilbers’s deposition, filed as an exhibit in Napster’s bankruptcy.

Epilogue: After the Revolution

310 “I fear we’re getting into a game of Whack-a-Mole” The executive was quoted in a July 23, 2001, Wired News article available at http://www.wired.com/news/mp3/0,1285,45234-2,00.html.

311 It later emerged The New York Times article is available with free registration at http://www.nytimes.com/2002/03/07/arts/music/07POPL.html.

311 Disney CEO Michael Eisner testified in Congress Eisner’s testimony was before Hollings’s Senate Commerce Committee and is available at http://commerce.senate.gov/hearings/hearings0202.htm. Barrett’s response came in the friendlier setting of the Judiciary Committee.

312 they had also invested a combined $200,000 in Napster According to capitalization tables.

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