Some big tech merger news today as Best Buy Co. Inc. announced plans to buy Napster Inc. for $121 million in a move the nation’s largest consumer electronics retailer says will open the doors to new digital entertainment customers.
For those of you who haven’t come across Napster since it went bankrupt several years ago, the Los Angeles-based company now operates as subscription-based service selling users access to a library of about 5 million songs for $12.95 a month.
Under the deal, Minneapolis-based Best Buy will acquire Napster’s 700,000 subscribers, its Web-based service platform as well as its mobile service.
“Best Buy believes the combined capabilities of the two companies will allow it to build stronger relationships with customers, expand the number of subscribers and capture recurring revenue by offering ongoing value over a mobile digital platform,” the company said.
Earlier this summer, Blockbuster Inc. withdrew a $1 billion proposal to acquire Circuit City Stores Inc., citing market conditions.