View this article at: http://www.macnn.com/articles/04/02/20/napster.facing.problems/ Friday, Feb 20, 2004 7:50am Napster faces plenty of problems Napster had struck a deal with HP shortly before its launch that would have seen the music service arrive pre-installed on HP computers, but "HP suddenly -- and without explanation -- returned Napster's $250,000 check and canceled the agreement," reports The San Jose Mercury News. HP, of course, would later partner with Apple. This is just one of the blows that Napster 2.0 has suffered since its inception. The company lost $15 million in its first two months of operation, has seen several executives depart, and the latest data shows Napster 2.0 only holding 12 percent of the online music business, compared to Apple's 56 percent.