Napster and Tower Records Japan Create Joint Venture to Launch Napster Japan

Release: Napster has tied up with Tower Records Japan, the leading music retailer in Japan, to launch Napster Japan in the territory within the next 12 months.
The new venture will initially operate out of Tower's Tokyo headquarters under the guidance of a dedicated board of directors chaired by TRJ CEO Hiroyuki Fushitani. The announcement earmarks Japan as Napster's next major market after the U.S., UK, Canada, and soon-to-be-launched Germany.
Under the terms of the deal, TRJ will contribute up to $7 million in cash and undertake additional funding obligations in exchange for an approximately 70% majority equity stake in Napster Japan. Napster will provide up to $3 million in cash in exchange for a 30% minority equity stake in Napster Japan and guaranteed royalty income.