09/15/2008, 8:50am, EDT
Monday, September 15thBest Buy to acquire Napster
Napster this morning made the surprise announcement that it has entered into an agreement that will see the online store acquired by Best Buy, putting an end to the company's independence. The terms of the deal are largely unavailable apart from a $121 million price but has seen Napster indefinitely delay its annual shareholder's meeting from its originally scheduled September 18th timeframe.
The initiative is nonetheless crucial for Napster, which has struggled to maintain its existing base of subscription and per-track customers amid competition from Amazon MP3, iTunes and other online stores. Napster just recently launched its own DRM-free MP3 store but has faced challenges from three critical investors who have been rallying opposition against the existing board of directors in the belief that the board isn't qualified to guide the company.
Best Buy is non-specific in announcing its intentions for the deal beyond 'enhancing capabilities' in digital media and the mobile realm, though the big-box retailer has often depended on outside help for its own, small-scale media store and has been largely dependent on protected Windows Media tracks for its in-house music service.
Filed under: industry, audio
Other story tags: iTunes, Amazon, Best Buy, Napster
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so...
Does this mean I should stop uninstalling Napster when I do a setup on someone's computer? (yes I work for Geek Squad, go on bad mouth me).
complicated
I wonder what effect this will have on Best Buy/Apple relations.
As an owner of AAPL
As an owner of Apple stock, let me just say that I'm very happy that Apple doesn't go around making ridiculous acquisitions like this. Can't Napster just be left to die? I understand the whole concept of name recognition and brand equity and such, but my bet is that Napster is synonymous not with "Music" but with "Free Music" for most people. Which, has to make you wonder why companies would go around investing in this dumb ass venture...
Who cares?
Napster has changed so much from what it started out as (a way to steal music). Do people still use this thing?
Napster
....is a [very] hollow shell of what it used to be, and that's assuming that some of the same ppl who worked on it are still there.
LOL!!!
Good people should find better places to work than with the Gunk Squad. I've seen so many good techs get bad mouthed due to the majority of imbeciles that make up that'Geek Squad'
lol best buy...
...surprised they got their hands on it before MS. maybe that's the plan...? they know MS will pull their head out of the sand in a couple years and go: "we should look into this Napster thing. it has potential."