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Rhapsody to Acquire Napster

By - Source: Rhapsody PR (via Engadget) | B 10 comments

Rhapsody has announced that it plans to acquire Napster from Best Buy.

Just a few years ago, Napster was acquired by Best Buy for a massive $121 million. Now it seems Best Buy is ready to off-load the music service, as on-demand music provider Rhapsody has just sent out a release informing the press of its intentions to acquire Napster. 

Details of the acquisition are thin on the ground but the deal is expected to close at the end of November. When it does, Rhapsody will acquire Napster subscribers and certain other assets while Best Buy will receive a minority stake in Rhapsody. 

"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."

"Rhapsody has demonstrated that it has what it takes to build a profitable business in the increasingly competitive on-demand music market," said Chris Homeister, senior vice president and general manager of entertainment for Best Buy. "We are confident they are the right partner to provide Napster's existing subscriber base with an immersive digital music experience moving forward."

Originally founded as a peer-to-peer (P2P) music sharing service, Napster ran into substantial legal trouble relating to copyright infringement and was shut down in the early 00s. The service was relaunched by Roxio, which purchased Napster's assets at a bankruptcy auction in 2002, as a pay service, and purchased by Best Buy in September of 2008.

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  • 4 Hide
    captaincharisma , October 4, 2011 5:34 AM
    wow i didn't even know these companies still existed
  • -1 Hide
    Inferno1217 , October 4, 2011 3:26 PM
    People use Rhapsody and Napster? What a waste of money!
  • -1 Hide
    halcyon , October 4, 2011 3:37 PM
    Wow, didn't even realize Napster was still around.
  • 0 Hide
    Markon101 , October 4, 2011 3:49 PM
    Spotify is way better than either of those in my opinion.
  • 0 Hide
    stratplaya , October 4, 2011 6:14 PM
    I've used Napster for a couple of years and it's far superior as a source of MP3 files than itunes. For a small $5 monthly fee (well, actually it's now billed 3 months at a time), you get 15 free MP3 downloads and can listen all you want.
  • 0 Hide
    halcyon , October 4, 2011 6:42 PM
    stratplayaI've used Napster for a couple of years and it's far superior as a source of MP3 files than itunes. For a small $5 monthly fee (well, actually it's now billed 3 months at a time), you get 15 free MP3 downloads and can listen all you want.

    Yea?
  • 0 Hide
    Chef_Boyardee , October 4, 2011 7:13 PM
    Markon101Spotify is way better than either of those in my opinion.

    I hear this. But I've been able to stump spotify. Grooveshark.com i have yet to stump and its free. I was a paying subscriber for rhapsody since 2008 until if found grooveshark.
  • 0 Hide
    Proximon , October 4, 2011 8:22 PM
    I think you might be surprised at what you can get with Rhapsody. They only have one large problem... some of the best artists and tracks aren't available to them.
    So, you can download ALMOST unlimited music for playback on a compatible device for a flat monthly fee. BUT you can't download the Beatles or Led Zeppelin. Will Napster improve Rhapsody's access to music rights?
    Well, I see they have 28 albums from The Who, but no Beatles and Led Zep can only be purchased, not streamed. And they no longer offer the ability to listen to songs off line (without buying them). The only thing they have really is a few more artists available FOR PURCHASE.
    Maybe the acquisition will give them more bargaining muscle with the labels. We'll see.
  • 0 Hide
    eddieroolz , October 5, 2011 12:11 AM
    Out of the two parties in here I only knew Napster; Rhapsody is an alien corporation to me.
  • 0 Hide
    halcyon , October 5, 2011 12:14 AM
    eddieroolzOut of the two parties in here I only knew Napster; Rhapsody is an alien corporation to me.


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