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."