09-16-2008, 12:20 PM
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#1 (permalink)
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SOT N3rd Mod +1
Join Date: Aug 2007
Location: The phone booth across the street
Posts: 10,357
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Best Buy to Buy Napster for $121 Million
Quote:
Electronics retailer Best Buy announced Monday that it will acquire online music service Napster for $121 million.
Best Buy will acquire Napster's 700,000 digital entertainment subscribers, its Web-based customer service platform, and mobile applications, Best Buy said.
The deal, which is expected to close in the fourth quarter, has been approved by the Napster board of directors, and Napster CEO Chris Gorog will remain with the company after the acquisition is complete. Best Buy has no plans to move the company's 140 Los Angeles-based employees to its Richfield, Minnesota headquarters or "make significant changes in personnel."
"This transaction offers Best Buy a recognized platform for enhancing our capabilities in the digital media space and building new, recurring relationships with customers," Brian Dunn, president and COO of Best Buy, said in a statement. "Over time we hope to strengthen our offerings to consumers, who we believe will increasingly seek devices and solutions that enable them to access their content wherever, whenever and however they want."
"Best Buy is uniquely positioned to benefit from Napster's digital entertainment distribution platform," Napster's Gorog said in a statement. "We are looking forward to combining our digital media capabilities with Best Buy's resources and global network to extend our digital content platforms."
In May, Napster unveiled an online music store that boasts DRM-free MP3s. With six million tracks, the company claimed to have the largest selection of music among online music services.
Also in May, Best Buy purchased 50 percent of British consumer electronics leader Carphone Warehouse's retail business for $2.1 billion. The two companies plan to launch a completely new venture.
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