There may be hope for Napster yet– electronics giant Best Buy announced today their plan to purchase the company in the near future. The ever-struggling digital music service, which recently added a full MP3 store to its capabilities, will cost Best Buy $121 million in cold cash money, which translates to $2.65 a share.
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There may be hope for Napster yet– electronics giant Best Buy announced today their plan to purchase the company in the near future. The ever-struggling digital music service, which recently added a full MP3 store to its capabilities, will cost Best Buy $121 million in cold cash money, which translates to $2.65 a share.
“Best Buy intends to use Napster’s capabilities and digital subscriber base to reach new customers with an enhanced experience for exploring and selecting music and other digital entertainment products over an increasing array of devices,” said Best Buy President Brian Dunn.
In addition to the music store, Napster is providing Best Buy with full access to their 700,000+ subscribers, customer service, and mobile projects. So far, Best Buy has not indicated any intention of making changes to Napster, meaning the service is still one of many Davids to iTunes’ Goliath (but we all know how that story ended, so anything is possible…).
Best Buy also does not plan on making any changes to Napster’s leadership, already having ironed out arrangements with chief executive Chris Gorog (who initiated the sale of the company) and other high-ranking positions to continue their employment after the deal is sealed. Other Los Angeles Napster employees are expected to remain with the company.
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