Best Buy sells Napster to Rhapsody

After spending $121 million to acquire Napster back in 2008, Best Buy has sold the diminishing paid music service to Rhapsody, it’s long time rival. The deal didn’t involve a number. In fact, all Best Buy is getting is a minority stake in the combined company (Rhapsody and Napster). In other words, they are shareholders of less than 50 per cent of this new companies equity capital (No they don’t have any “controlling” stake in this deal). Or as I like to look at it, they get a little less than half the profits without doing any of the work.

“Napster looked like an attractive purchase at the time, but it didn’t do much for Best Buy at all,” Michael McGuire, Gartner Inc. analyst, said. Napster has dropped from 700,000 users in 2008 to somewhere between 2/300,000 users now.

What this means for you? If you’re a Napster user, your account will be switched over to Rhapsody. “Napster will shut down, with its subscribers being migrated to Rhapsody,” according to the LA Times. Rhapsody is hoping that be acquiring Napster, this will give them more power to compete against other services like Spotify, MOG, and Rdio. What ever will happen next?! Comment away!

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One thought on “Best Buy sells Napster to Rhapsody

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