Napster's Next Chapter: Merged Into Best Buy
from the yawn dept
Napster, which now has almost nothing other than its brand to connect it to the revolutionary music sharing service Shawn Fanning launched nearly a decade ago, is about to undergo its latest shift, as Best Buy has bought what remains of Napster for $127 million, representing a hefty premium on the already pretty weak valuation of the company. Ever since Roxio bought Napster — and renamed itself Napster — the company has tried to position its music subscription offering as a huge success, but there’s been little evidence to back that up. Now selling off to Best Buy for such a low price pretty much confirms that there wasn’t much there.
Filed Under: downloadable music, mergers, subscription services
Companies: best buy, napster
Comments on “Napster's Next Chapter: Merged Into Best Buy”
It kinda makes sense...
..when you put 2 and 2 together. BestBuy is a member of that Industry
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Anonymous Coward says:
Re: It kinda makes sense...
That link didn’t make it.
http://blogs.pcworld.com/staffblog/archives/007744.html
I bought 1 song from napster awhile ago – DRM has killed the mp3, I no longer buy mp3s unless they are DRM(Digital Rental Media)free. The only way to make the mp3 play is to install and keep running their process.
Consumer
give us DRM free or ki$$ my a$$
Re: Re:
Sorry, can’t help myself……
You mean digital music, not the mp3 format. The mp3 format doesn’t have support for DRM, which is why it tends to be one of the preferred format for interoperability.
What Price Is It?
Business Week says 127MM, MarketWatch says $54MM. No wonder the markets are all screwed up, they can’t even get the sale price right of the dead duck called Napster.
Mike: Please clarify.
Re: What Price Is It?
Because Napster has a whack of cash and short term investments in the bank. So the price paid is $127M, but the actual monies out of the coffers when the finances are combined will be $54M.
Re: What Price Is It?
The total deal is for $121 million, but Best Buy is also receiving $67 million in cash and short term investments from Napster, so the net deal is $54 million.
Best Buy to buy Napster for $121 million
Re: What Price Is It?
MarketWatch says $54M because Napster has $67M in cash assets.
BestBuy finally wakes up
Digital media is going to rock CD, DVD, and BluRay sales. BestBuy needs Napsters to recuperate lost revenue. Napsters’ measly 700000 user will dramatically increase with BestBuy’s distribution and promotional reach.
I don’t use napsters and I don’t particularly like bestbuy, but any competition for itunes is good for the media distribution industry.
Re: BestBuy finally wakes up
I agree… Anything to shoot iTunes out the sky with there DRM bullshit…
look out dude
So now when you check out at Best Buy, they covertly sign you up for Napster ?