Best Buy acquires Napster

Inan effort to keep pace with other consumer electronic chains enteringinto the digital music market, Best Buy Inc. agreed to pay US $121million for online music retailer Napster Inc.


Aspart of the deal, Napster shares are being valued at $2.65 a share,nearly doubling its Friday closing price of $1.36. Best Buy said itwould be acquiring Napster’s 700,000 subscribers as well as thecompany’s Web-based and mobile retail capabilities.


Theoriginal Napster was a pioneer in the digital music market, offering afree music sharing service to its users. Following a lawsuit by themusic industry, the company was shut down by U.S. courts in 2002 overcopyright infringement issues. It was later reopened as a legitimateonline music distribution service in 2003.


The deal is set to close later this year.

Related Download
CanadianCIO Census 2016 Mapping Out the Innovation Agenda Sponsor: Cogeco Peer 1
CanadianCIO Census 2016 Mapping Out the Innovation Agenda
The CanadianCIO 2016 census will help you answer those questions and more. Based on detailed survey results from more than 100 senior technology leaders, the new report offers insights on issues ranging from stature and spend to challenges and the opportunities ahead.
Register Now