Best Buy to acquire Napster

US consumer electronics retailer Best Buy has revealed that it is to purchase digital music service Napster for $121 million in cash.

Best Buy is to pay $2.65 per share, which Reuters reports is almost double the amount of Friday's closing share price for the music co.

The proposed acquisition encompasses Napster's approximately 700,000 subscribers as well as its web-based customer service and mobile capabilities.

"Best Buy intends to use Napster's capabilities and digital subscriber base to reach new customers with an enhanced experience for exploring and selecting music and other digital entertainment products over an increasing array of devices", said Best Buy president.

The deal is expected to close during the fourth quarter of 2008, with the company's 140 employees to stay at its Los Angeles headquarters along with Napster's CEO and other existing execs.