Eminence Capital, LP – ‘SC 13D’ on 8/28/06 re: Napster Inc

On:  Monday, 8/28/06, at 5:02pm ET   ·   Accession #:  902664-6-2143   ·   File #:  5-78044

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General Statement of Beneficial Ownership   —   Schedule 13D
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: SC 13D      Napster, Inc.                                         10     37K 

Document Table of Contents

SC 13D
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SECURITIES & EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 SCHEDULE 13D*

(RULE 13D-101)

INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO
13D-1(A) AND AMENDMENTS THERETO FILED PURSUANT TO 13D-2(A)

 NAPSTER, INC.
--------------------------------------------------------------------------------
(NAME OF ISSUER)

COMMON STOCK
--------------------------------------------------------------------------------
(TITLE OF CLASS OF SECURITIES)

 630797108
--------------------------------------------------------------------------------
(CUSIP NUMBER)

Ricky C. Sandler
Eminence Capital LLC, 65 East 55th Street, 25th Floor,
 New York, NY 10022 (212) 418-2100
--------------------------------------------------------------------------------
(NAME, ADDRESS AND TELEPHONE NUMBER OF PERSON AUTHORIZED
TO RECEIVE NOTICES AND COMMUNICATIONS)

 August 16, 2006
--------------------------------------------------------------------------------
 (DATE OF EVENT WHICH REQUIRES FILING OF THIS STATEMENT)

If the filing person has previously filed a statement on Schedule 13G to report 
the acquisition which is the subject of this Schedule 13D, and is filing this   
schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following    
box  [ ].                                                                       

NOTE: Schedules filed in paper format shall include a signed original and five  
copies of the schedule, including all exhibits. See Rule 13d-7 for other parties
to whom copies are to be sent.                                                  

*   The remainder of this cover page shall be filled out for a reporting        
 person's initial filing on this form with respect to the subject class of
 securities, and for any subsequent amendment containing information which
would alter the disclosures provided in a prior cover page.             

The information required in the remainder of this cover page shall not be deemed
to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 
("Act") or otherwise subject to the liabilities of that section of the Act but  
shall be subject to all other provisions of the Act (however, see the Notes).   

(Continued on following pages)

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CUSIP No. 630797108           13D                           Page 2 of 10 Pages  

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(1)  NAME OF REPORTING PERSONS                                              
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)       

Eminence Capital, LLC                           
--------------------------------------------------------------------------------
(2)  CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **                    
(a)  [ ]                                                          
(b)  [ ]                                                          
--------------------------------------------------------------------------------
(3)  SEC USE ONLY                                                           
--------------------------------------------------------------------------------
(4)  SOURCE OF FUNDS **                                                     

OO                                              
--------------------------------------------------------------------------------
(5)  CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT      
     TO ITEMS 2(d) OR 2(e)                                               [ ]
--------------------------------------------------------------------------------
(6)  CITIZENSHIP OR PLACE OF ORGANIZATION                                   

New York                                        
--------------------------------------------------------------------------------
NUMBER OF      (7)  SOLE VOTING POWER                                         
SHARES                                                                    
BENEFICIALLY                                                                    
OWNED BY                                                                    
EACH                                                                    
REPORTING                                                                     
PERSON                                                                    
WITH                                                                      
-0-                         
               -----------------------------------------------------------------
(8)  SHARED VOTING POWER                        

3,598,566                   
                ----------------------------------------------------------------
(9)  SOLE DISPOSITIVE POWER                     

-0-                         
                 ---------------------------------------------------------------
(10) SHARED DISPOSITIVE POWER                   

3,598,566                   
--------------------------------------------------------------------------------
(11)   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON             

3,598,566                                       
--------------------------------------------------------------------------------
(12)   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ** 
                                                                         [ ]
--------------------------------------------------------------------------------
(13)   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)                       

8.0%                                            
--------------------------------------------------------------------------------
(14)   TYPE OF REPORTING PERSON **                                              

IA                                              
--------------------------------------------------------------------------------
** SEE INSTRUCTIONS BEFORE FILLING OUT!                                         

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CUSIP No. 630797108           13D                           Page 3 of 10 Pages  

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(1)  NAME OF REPORTING PERSONS                                              
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)       

Eminence GP, LLC                                
--------------------------------------------------------------------------------
(2)  CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **                    
(a)  [ ]                                                          
(b)  [ ]                                                          
--------------------------------------------------------------------------------
(3)  SEC USE ONLY                                                           
--------------------------------------------------------------------------------
(4)  SOURCE OF FUNDS **                                                     

WC                                              
--------------------------------------------------------------------------------
(5)  CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT      
     TO ITEMS 2(d) OR 2(e)                                               [ ]
--------------------------------------------------------------------------------
(6)  CITIZENSHIP OR PLACE OF ORGANIZATION                                   

New York                                        
--------------------------------------------------------------------------------

NUMBER OF      (7)  SOLE VOTING POWER                                         
SHARES                                                                    
BENEFICIALLY                                                                    
OWNED BY                                                                    
EACH                                                                    
REPORTING                                                                     
PERSON                                                                    
WITH                                                                    
-0-                         
                ----------------------------------------------------------------
(8)  SHARED VOTING POWER                        

1,859,876                   
                ----------------------------------------------------------------
(9)  SOLE DISPOSITIVE POWER                     

-0-                         
                ----------------------------------------------------------------
(10) SHARED DISPOSITIVE POWER                   

1,859,876                   
--------------------------------------------------------------------------------
(11)   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON             

1,859,876                                       
--------------------------------------------------------------------------------
(12)   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ** 
                                                                         [ ]
--------------------------------------------------------------------------------
(13)    PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)                      

4.1%                                            
--------------------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON **                                                

OO                                              
--------------------------------------------------------------------------------
**    SEE INSTRUCTIONS BEFORE FILLING OUT!                                    

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CUSIP No. 630797108           13D                           Page 4 of 10 Pages  

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(1)  NAME OF REPORTING PERSONS                                              
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)       

Ricky C. Sandler                                
--------------------------------------------------------------------------------
(2)  CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP **                    
(a)  [ ]                                                          
(b)  [ ]                                                          
--------------------------------------------------------------------------------
(3)  SEC USE ONLY                                                           
--------------------------------------------------------------------------------
(4) SOURCE OF FUNDS **                                                      

OO                                              
--------------------------------------------------------------------------------
(5)  CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT      
     TO ITEMS 2(d) OR 2(e)                                               [ ]
--------------------------------------------------------------------------------
(6)  CITIZENSHIP OR PLACE OF ORGANIZATION                                   

United States                                   
--------------------------------------------------------------------------------

NUMBER OF      (7)  SOLE VOTING POWER                                         
SHARES                                                                    
BENEFICIALLY                                                                    
OWNED BY                                                                    
EACH                                                                    
REPORTING                                                                     
PERSON                                                                    
WITH                                                                    
-0-                         
                ----------------------------------------------------------------
(8)  SHARED VOTING POWER                        

3,598,566                   
                ----------------------------------------------------------------
(9)  SOLE DISPOSITIVE POWER                     

-0-                         
                ----------------------------------------------------------------
(10)  SHARED DISPOSITIVE POWER                

3,598,566                   
--------------------------------------------------------------------------------
(11)   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON             

3,598,566                                       
--------------------------------------------------------------------------------
(12)   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ** 
                                                                         [ ]
--------------------------------------------------------------------------------
(13)   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)                       

8.0%                                            
--------------------------------------------------------------------------------
(14)   TYPE OF REPORTING PERSON **                                              

IN                                              
--------------------------------------------------------------------------------
**    SEE INSTRUCTIONS BEFORE FILLING OUT!                                    

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CUSIP No. 630797108           13D                           Page 5 of 10 Pages  

Item 1. Security and Issuer.                                                    

     This statement relates to the common stock, par value $0.001 (the "Common
Stock") of Napster, Inc. (the "Company"). The Company's principal executive     
offices are located at 9044 Melrose Avenue, Los Angeles, California 90069.      

Item 2. Identity and Background.                                                

This statement is filed on behalf of each of the following persons  
(collectively, the "Reporting Persons"):                                        

(i)   Eminence Capital, LLC, a New York limited liability company ("Eminence    
Capital");                                                          

(ii)  Eminence GP, LLC, a New York limited liability company ("Eminence GP");   
and                                                                 

(iii) Ricky C. Sandler, a U.S. Citizen ("Mr. Sandler").                         

(a) This statement relates to Shares of Common Stock as defined in Item 1 above 
held for the accounts of: Eminence Partners, LP, a New York limited partnership 
("Eminence I"); Eminence Partners II, LP, a New York limited partnership        
("Eminence II"); Eminence Long Alpha, LP, a Delaware limited partnership ("ELA")
and Eminence Leveraged Long Alpha, LP, a Delaware limited partnership ("ELLA"   
and together with Eminence I, Eminence II, and ELA, the "Partnerships"); as well
as Eminence Long Alpha Master Fund, Ltd. and Eminence Leveraged Long Alpha      
Master Fund, Ltd. (the "Offshore Master Funds") and Eminence Fund, Ltd.         
("Eminence Offshore"), each a Cayman Islands company, and collectively referred 
to as the "Offshore Funds". The Partnerships and the Offshore Funds are         
collectively referred to as the "Eminence Funds".                               

Eminence Capital serves as the investment manager to the Eminence Funds with    
respect to the shares of Common Stock directly owned by the Eminence Funds and  
may be deemed to have voting and dispositive power over the Shares held for the 
accounts of the Eminence Funds.                                                 

Eminence GP serves as general partner or manager with respect to the shares of  
Common Stock directly owned by the Partnerships and the Offshore Master Funds,  
respectively, and may be deemed to have voting and dispositive power over the   
Shares held for the accounts of the Partnerships and the Offshore Master Funds. 

Ricky C. Sandler is the Managing Member of each Eminence Capital and Eminence GP
and may be deemed to have voting and dispositive power with respect to the      
Shares of Common Stock directly owned by the Eminence Funds.                    

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CUSIP No. 630797108           13D                           Page 6 of 10 Pages  

     (b)  The address of the principal business and principal office of Eminence
         GP and the Investment Manager is 65 East 55th Street, 25th Floor, New
       York, NY 10022. The business address of Mr. Sandler is 65 East 55th
Street, 25th Floor, New York, NY 10022.                     

    c)   The principal business of Eminence GP is serving as a general partner
       to the Partnerships and manager to the Offshore Master ( Funds. The
         principal business of the Investment Manager is that of an investment
        manager engaging in the purchase and sale of securities on behalf of
         clients. Mr. Sandler serves as the Managing Member of Eminence GP and
the Investment Manager.                                     

  (d)  None of the Reporting Persons has, during the last five years, been
       convicted in a criminal proceeding (excluding traffic violations or
similar misdemeanors).                                      

    (e)  None of the Reporting Persons has, during the last five years, been a
       party to a civil proceeding of a judicial or administrative body of
          competent jurisdiction and, as a result of such proceeding, was, or is
    subject to, a judgment, decree or ( final order enjoining future
     violations of, or prohibiting or mandating activities subject to,
          Federal or State securities laws or finding any violation with respect
to such laws.                                               

    (f)  Each of Eminence GP and the Investment Manager is a limited liability
          company organized under the laws of the State of New York. Mr. Sandler
is a United States citizen.                                 

Item 3. Source and Amount of Funds and Other Consideration.                     

    The net investment cost (including commissions, if any) of the shares of
Common Stock directly owned by the Partnerships and the Offshore Funds is       
approximately $13,000,000. Mr. Sandler, Eminence GP and the Investment Manager  
do not directly own any shares of Common Stock.                                 

Item 4. Purpose of the Transaction.                                             

The purpose of the acquisition of the shares of Common Stock by the Reporting   
Persons is for investment, and the purchases of the shares of Common Stock by   
the Reporting Persons were made in the ordinary course of business and were not 
made for the purpose of acquiring control of the Company. Although the          
acquisition of the shares of Common Stock by the Reporting Persons is for       
investment purposes, the Reporting Persons may pursue discussions with          
management in an effort to maximize long-term value for shareholders. Each of   
the Reporting Persons may make further purchases of shares of Common Stock from 
time to time and may dispose of any or all of the shares of Common Stock held by
him or it at any time. None of the Reporting Persons has any plans or proposals 
which relate to, or could result in, any of the matters referred to in          
paragraphs (b) through (j), inclusive, of Item 4 of the Schedule D. Each of the 
Reporting Persons may, at any time and from time to time, review or reconsider  
his or its position and formulate plans or proposals with respect thereto, but  
has no present intention of doing so.                                           

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CUSIP No. 630797108           13D                           Page 7 of 10 Pages  

Item 5. Interest in Securities of the Issuer.                                   

A.  Eminence Capital, LLC                                           

(a) Aggregate number of shares beneficially owned: 3,598,566

            Percentage: 8.0%  The percentages used herein and in the rest of
Item 5 are calculated based upon the 44,833,720 shares of Common Stock issued   
and outstanding at July 27, 2006, as set forth in the Company's Form 10-Q for   
the quarterly period ended June 30, 2006 (as filed on August 2, 2006).          

(b) 1. Sole power to vote or direct vote: -0-               

2. Shared power to vote or direct vote: 3,598,566   

   3. Sole power to dispose or direct the disposition: -0-

           4. Shared power to dispose or direct the disposition: 3,598,566

        (c) The trading dates, number of shares of Common Stock purchased or
sold and the price per share for all transactions in the Common Stock in the    
last sixty days, which were all in the open market, are set forth in Exhibit 1  
and are incorporated by reference.                                              

      (d) Each of the clients of the Investment Manager has the power to
direct the receipt of dividends from or the proceeds of the sale of such shares.

(e) Not applicable.                                         

B.  Eminence GP, LLC                                                

(a) Aggregate number of shares beneficially owned: 1,859,876
Percentage: 4.1%                                    

(b) 1. Sole power to vote or direct vote: -0-               

2. Shared power to vote or direct vote:1,859,876    

   3. Sole power to dispose or direct the disposition: -0-

           4. Shared power to dispose or direct the disposition: 1,859,876

        (c) The trading dates, number of shares of Common Stock purchased or
sold and the price per share for all transactions in the Common Stock in the    
last sixty days, which were all in the open market, are set forth in Exhibit 1  
and are incorporated by reference.                                              

(d) Not applicable.                                         

(e) Not applicable.                                         

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CUSIP No. 630797108           13D                           Page 8 of 10 Pages  

C.  Ricky C. Sandler                                                

(a) Aggregate number of shares beneficially owned: 3,598,566
Percentage: 8.0%                                    

(b) 1. Sole power to vote or direct vote: 0                 

2. Shared power to vote or direct vote: 3,598,566   

 3. Sole power to dispose or direct the disposition: 0

           4. Shared power to dispose or direct the disposition: 3,598,566

        (c) The trading dates, number of shares of Common Stock purchased or
sold and the price per share for all transactions in the Common Stock in the    
last sixty days, which were all in the open market, are set forth in Exhibit 1  
and are incorporated by reference.                                              

(d) Not applicable.                                         

(e) Not applicable.                                         

Item 6: Not applicable                                                          

Item 7: Material to be filed as Exhibits                                        

        Exhibit 1: Schedule of transactions effected by Reporting Persons in
the last sixty days.                                                            

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CUSIP No. 630797108           13D                           Page 9 of 10 Pages  

SIGNATURES                                                                      

After reasonable inquiry and to the best of our knowledge and belief, the       
undersigned certifies that the information set forth in this statement is true, 
complete and correct.                                                           

DATED: August 28, 2006                                                          

                  /s/ Ricky C. Sandler
                                       -----------------------------------------
                                    Ricky C. Sandler, individually, and as
                                       Managing Member of Eminence Capital, LLC,
    and as
                                 Managing Member of Eminence GP, LLC

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CUSIP No. 630797108           13D                           Page 10 of 10 Pages 

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                                                                     EXHIBIT 1

 Eminence Capital, LLC
Eminence GP, LLC
Ricky C. Sandler

                                                         PRICE
                                                         PER SHARE
                                                        (INCLUDING
                                   NUMBER OF SHARES       COMMISSIONS,
DATE OF TRANSACTION                     PURCHASED/(SOLD)         IF ANY)        
-----------------------------------    ------------------    --------------     
8/15/2006                                         93,566     $2.78              
                                  ------------------    --------------
8/16/2006                                        510,000     $2.83              
                                  ------------------    --------------
8/17/2006                                        190,000     $2.98              
                                  ------------------    --------------
8/22/2006                                        250,000     $3.25              
                                  ------------------    --------------
8/23/2006                                        115,000     $3.32              
8/24/2006                                        190,000     $3.41              
8/28/2006                                        105,000     $3.41              

Dates Referenced Herein   and   Documents Incorporated by Reference

				Referenced-On Page
This ‘SC 13D’ Filing		Date		First		Last			Other Filings
Filed on:		8/28/06		9
		8/16/06		1
		8/2/06		7					10-Q,  8-K
		7/27/06		7
		6/30/06		7					10-Q,  13F-HR
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