9/19/2008 12:03:00 PM
Best Buy acquires Napster for US$ 121 million
US retail giant and Carphone Warehouse’s partner, Best Buy has agreed to buy digital music provider, Napster for US$ 121 million.
Dave Morrish, Best Buy’s connected digital solutions executive vice president said: ‘We can foresee Napster acting as a platform for accelerating our growth in the emerging industry of digital entertainment, beyond music subscriptions.’
The company has around 700,000 subscribers accessing unlimited music for US$12.95 per month. In addition to its main online offering, Napster has a mobile offering with operators including O2 in the UK.
The news of the acquisition increased Napster’s share price by 86% during a week of free fall in the stock markets. The company’s shares had fallen by 95% over the past six years.