The former peer-to-peer file stealing sharing service turned legit is changing hands once again. After filing for bankruptcy nearly a decade ago, Napster's assets were picked up by Roxio for $5.3 million in cash and stock in 2002. In 2008, Best Buy spent $121 million acquiring the music subscription service, which by then had more 700,000 subscribers. Best Buy was never able to do much with Napster, and now Rhapsody will take over operations.
Rhapsody is acquiring Napster's subscribers and other assets for an undisclosed amount of money, while Best Buy will maintain a minority stake in the company, Rhapsody announced today.
"This deal will further extend Rhapsody's lead over our competitors in the growing on-demand music market," said Jon Irwin, president, Rhapsody. "There's substantial value in bringing Napster's subscribers and robust IP portfolio to Rhapsody as we execute on our strategy to expand our business via direct acquisition of members and distribution deals."
Irwin is pretty stoked about the deal, noting that streaming music is a "go big or go home" business and that Rhapsody's "focus is on sustainably growing the company." The deal is expected to close on or around November 30, 2011.