Snocap has now chopped 60 percent of its staff, according to information circulating late Thursday.
The development first appeared in Silicon Valley rumormonger ValleyWag, and was later confirmed by a company representative. The spokeswoman, Susan Celia Swan, also confirmed that Snocap is in play, telling C|Net that “Snocap has received interest from several companies and is pursuing that.”
The news follows a major tie-up between Snocap and MySpace, a partnership that enables bands to sell downloads directly from their profile pages. That could become a powerful sales mechanism, though Snocap has yet to disclose download numbers, raising suspicions of soft uptake. Earlier, Snocap had pursued a model related to protected P2P systems, a sector that has failed to gain traction. The company was originally founded by Jordan Mendelson, Ron Conway, and Shawn Fanning, and is currently headed by chief executive Rusty Rueff.