Best Buy Snaps Up Napster for a Cool $121 Million
Posted 09/15/08 at 12:02:57 PM by Paul Lilly
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And so the Napster saga continues (or, depending on your perspective, it comes to an end). The former peer-to-peer pioneer gone legit music service managed to avoid being gobbled up by an ice cream store owner, but the temptation to sell ultimately proved too strong for investors eager to cash in rather than continue to face stiff competition.
According to The Wall Street Journal, electronics retailer Best Buy has agreed to buy Napster for $121 million, which includes $67 million of cash and short-term investments on Napster's books. The acquisition values the digital music service at $2.65 per share, or almost double the closing price on Friday, which sat at $1.36.
"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 otehr digital entertainment products over an increasing array of devices," said Best Buy president and COO Brian Dunn.
Napster's chief executive Chris Gorog is expected to remain in his post, along with the company's other senior executives. Best Buy also said it currently has no plans to relocate the music service's Los Angeles headquarters.
Was this a good move for Best Buy? Hit the jump and let us know your thoughts.
Image Credit: Best Buy and Napster
I work for Geek Squad inside best buy and...
Submitted by Sonickid101 on Mon, 09/15/2008 - 7:15pm
With all the helmets that get Viruses from limewire this is probably a good thing for our customers.
If it did end up benefitting
Submitted by sirphunkee on Mon, 09/15/2008 - 7:29pm
If it did end up benefitting the customer in some way, that would merely be a happy unintended coincidence. Of all the things BB can be credited with, altruism is not one of them
Are They on Drugs?!?!?!
Submitted by msspurlock on Mon, 09/15/2008 - 12:39pm
This is criminally stupid! A failed business model, saddled with DRM, ad they think this is a good idea? Hello? What are you getting for that, Best Buy? What deliverables came with this? The name? Who uses Napster? Among your mainstream customers, who's heard of it? If you were going to use stockholder money to buy a music service, why not buy one that succeeded? God, am I glad I didn't buy that stock. Hell, most of the suburban crowd you market to probably still think Napster's a virus!
Heh, and on top of it all,
Submitted by jwalch.hawk on Mon, 09/15/2008 - 2:34pm
Heh, and on top of it all, they're going to compensate for this stupidity by having their already annoying(ly ignorant) sales associates pushing stupid Napster promotions. Gotta love having to say "No, I don't want that extra shit." eight times at check out.
Submitted by statewd on Mon, 09/15/2008 - 9:56am
This is good for Napster and bad for Best Buy. What a waste of money purchasing Napster. It is long gone after its haydays. As for Best Buy, they can suck eggs because I don't give a rip for Best Buy. They're prices are like 500% higher then just buying online (even with shipping), the management just sucks, and the retail employees don't know much more then my grandma about computers.
Rant done. That felt good. < / RANT >
Submitted by pagen64 on Mon, 09/15/2008 - 9:51am
People...Still use napster? The only one who made out here is Napster.
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