Rhapsody buys Napster
Rhapsody has announced it is to buy Napster from electronics retailer Best Buy as it tries to stay one step ahead of competing music services like Spotify.
"This deal will further extend Rhapsody's lead over our competitors in the growing on-demand music market," said Jon Irwin, president of Rhapsody, speaking about the deal. "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."
Under the terms of the agreement, Rhapsody will acquire Napster subscribers and certain other assets, and Best Buy will receive a minority stake in Rhapsody. The transaction is expected to close on or around 30 November, 2011.
The company says its new subscribers will be able to access both services in the future.
"We're excited to welcome Napster music fans to the best on-demand music experience anywhere. Our new members will have more places to connect to the music they love and to discover new favourites, guided by Rhapsody's rockstar editorial team and the tastes of other Rhapsody members via our innovative social features," added Irwin.