Napster Is Tuning Up for a Takeover

A new appointment to Napster's (NAPS Quote) board of directors indicates that the company is stepping up its efforts to shop its fledgling online music service.

Napster said in an 8-K filing with the Securities and Exchange Commission last week that it added one more director to its board, Ross Levinsohn, the former president of News Corp's (NWS Quote) Fox Interactive Media.

While there, Levisohn spearheaded the acquisition of the wildly popular MySpace.com, gaming site IGN Entertainment and sports site Scout.com, among several other companies.

"This guy is not a low-profile guy, especially being involved in MySpace," says Darren Aftahi, an analyst with ThinkEquity who follows Napster. "I think it's an interesting turn of events given the fact that he's not really taking a permanent seat."

According to the filing, Levinsohn's term will expire at the company's annual stockholder meeting later this year.

Napster spokeswoman Becky Farina said that there was "no cloak-and-dagger" explanation for abruptly bringing on Levinsohn. Board members are appointed for three-year terms, and "he's just joining the group of board members who will be up for revalidation by the shareholders" at the meeting, she says.

When asked why Levinsohn doesn't just join the board at the annual meeting, Farina said that the company has an "interest in bringing him in sooner rather than later."

That might be because investors are growing impatient for a sale.