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Best Buy is getting out of the the digital music business, at least as far as Napster is concerned, selling the property off to music-streaming service Rhapsody in a deal that will wrap up at the end of November.
According to a press release sent out today, the companies confirmed that Rhapsody would be acquiring Napster’s users (which numbered 700K at the last sale) and that Best Buy would maintain a minority stake in the service. As for financials, the terms of the deal were not disclosed, nor were specifics about licensing or whether the service would remain the same detailed in the release.
Rhapsody’s president Jon Irwin had this to say about the acquisition:
“This deal will further extend Rhapsody’s lead over our competitors in the growing on-demand music market… 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 continued, hinting at growth plans for Napster:
“This is a ‘go big or go home’ business, so our focus is on sustainably growing the company… We’re excited to welcome Napster music fans to the best on-demand music experience anywhere. Our new members will have more places to connect to the music they love and to discover new favorites, guided by Rhapsody’s rockstar editorial team and the tastes of other Rhapsody members via our innovative social features.”
When all was said and done, Best Buy’s original acquisition of Napster was valued at about $121 million.
