Online music store Rhapsody acquires Napster

2011-10-04 08:14:40 GMT+7 (ICT)

SEATTLE, WASHINGTON (BNO NEWS) -- Online music store Rhapsody on Monday announced that it has signed an agreement to acquire Napster, a unit of consumer electronics retailer Best Buy Co., Inc.

Rhapsody is expected to further expand the company's capacity in the growing on-demand music market as it already stands as one of the most important online music stores in the United States.

"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," said Jon Irwin, president of Rhapsody.

Under the terms of the agreement, Rhapsody will acquire Napster subscribers and certain other assets while Best Buy will receive a minority stake in Rhapsody. The transaction is expected to close around November 30.  

The transaction will combine the subscriber bases of the two largest premium on-demand music services in the United States and will allow Rhapsody to further enhance its product line.

Chris Homeister, senior vice president and general manager of entertainment for Best Buy, expressed confidence that the deal will offer Napster's existing subscriber base an improved service. Rhapsody allows subscribers to access their more than 13 million songs through a number of services.

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