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Best Buy Acquires Online Music Service Napster For $121M




Online digital music market is getting warmed up, as US retail giant, Best Buy, announces it will acquire Napser for an astonishing $121 million price tag. The transaction is set to be accomplished in Q4 of this year and we have no doubt it was carried out in order to try snatching a substantial share from iTunes’ market dominance. Napster allows its 708,000 subscribers to access an unlimited library of music or using the “Napster Mobile” platform, on their mobile phones, for a small monthly fee of $15. Having said that, the company has never turned a profit, during its long years of existence.

Best Buy president Brian Dunn confirms the company’s desire to expand Napster services and 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.” Be sure it’s just the beginning and we expect more developments to take place in the near future. We do hope this move will increase the competition and at the end of the day, will be profitable for the consumers.

[via ZDNet]

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