Monday, September 15, 2008
Posted by Chris Gohlke in "Digital Home News" @ 09:00 PM
"Best Buy Inc. has agreed to buy Napster Inc. for $121 million, a deal that the consumer-electronics giant said it will use to reach new customers. The deal, which includes $67 million of cash and short-term investments on Napster's books, values the provider of digital music at $2.65 a share, nearly double Friday's closing price of $1.36. The acquisition, which is set to close in the fourth quarter, includes Napster's 700,000 digital entertainment subscribers, Web-based customer-service platform and mobile capabilities. "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 and Chief Operating Officer Brian Dunn."
Poor Napster. First the the man shuts you down for illegal activities. Then you reinvent yourself as a legal, albeit less popular alternative. Now you've resorted to selling out to Best Buy. I'm sorry!