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Rhapsody Acquires Napster

10/03/2011 02:15:46 PM Eastern

Seattle - Music service
Rhapsody announced it has acquired Napster and said that Best Buy will receive
a minority stake in Rhapsody.

According to the
announcement, 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 Nov. 30. 

"This deal will
further extend Rhapsody's lead over our competitors in the growing on-demand
music market," Jon Irwin, Rhapsody president, said in a statement.
"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."

"Rhapsody has
demonstrated that it has what it takes to build a profitable business in the
increasingly competitive on-demand music market," said Chris Homeister,
senior VP and general manager of entertainment for Best Buy. "We are
confident they are the right partner to provide Napster's existing subscriber
base with an immersive digital music experience moving forward."