Napster's Next Chapter: Merged Into Best Buy

from the yawn dept

Napster, which now has almost nothing other than its brand to connect it to the revolutionary music sharing service Shawn Fanning launched nearly a decade ago, is about to undergo its latest shift, as Best Buy has bought what remains of Napster for $127 million, representing a hefty premium on the already pretty weak valuation of the company. Ever since Roxio bought Napster -- and renamed itself Napster -- the company has tried to position its music subscription offering as a huge success, but there's been little evidence to back that up. Now selling off to Best Buy for such a low price pretty much confirms that there wasn't much there.


Reader Comments (rss)

(Flattened / Threaded)

  1.  
    identicon
    Anonymous Coward, Sep 15th, 2008 @ 12:09pm

    It kinda makes sense...

    ..when you put 2 and 2 together. BestBuy is a member of that Industry "> DRM effort.

     

    reply to this | link to this | view in thread ]

  2.  
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    Anonymous Coward, Sep 15th, 2008 @ 12:09pm

    I bought 1 song from napster awhile ago - DRM has killed the mp3, I no longer buy mp3s unless they are DRM(Digital Rental Media)free. The only way to make the mp3 play is to install and keep running their process.

    Consumer
    give us DRM free or ki$$ my a$$

     

    reply to this | link to this | view in thread ]

  3.  
    identicon
    Anonymous Coward, Sep 15th, 2008 @ 12:11pm

    Re: It kinda makes sense...

     

    reply to this | link to this | view in thread ]

  4.  
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    Last Dude, Sep 15th, 2008 @ 1:14pm

    What Price Is It?

    Business Week says 127MM, MarketWatch says $54MM. No wonder the markets are all screwed up, they can't even get the sale price right of the dead duck called Napster.

    Mike: Please clarify.

     

    reply to this | link to this | view in thread ]

  5.  
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    DanC, Sep 15th, 2008 @ 1:15pm

    Re:

    Sorry, can't help myself......

    You mean digital music, not the mp3 format. The mp3 format doesn't have support for DRM, which is why it tends to be one of the preferred format for interoperability.

     

    reply to this | link to this | view in thread ]

  6.  
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    mobiGeek, Sep 15th, 2008 @ 1:17pm

    Re: What Price Is It?

    Because Napster has a whack of cash and short term investments in the bank. So the price paid is $127M, but the actual monies out of the coffers when the finances are combined will be $54M.

     

    reply to this | link to this | view in thread ]

  7.  
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    DanC, Sep 15th, 2008 @ 1:21pm

    Re: What Price Is It?

    The total deal is for $121 million, but Best Buy is also receiving $67 million in cash and short term investments from Napster, so the net deal is $54 million.

    Best Buy to buy Napster for $121 million

     

    reply to this | link to this | view in thread ]

  8.  
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    Mogilny, Sep 15th, 2008 @ 1:47pm

    BestBuy finally wakes up

    Digital media is going to rock CD, DVD, and BluRay sales. BestBuy needs Napsters to recuperate lost revenue. Napsters' measly 700000 user will dramatically increase with BestBuy's distribution and promotional reach.

    I don't use napsters and I don't particularly like bestbuy, but any competition for itunes is good for the media distribution industry.

     

    reply to this | link to this | view in thread ]

  9.  
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    Sumbuddy Stoopid, Sep 15th, 2008 @ 3:23pm

    Re: BestBuy finally wakes up

    I agree... Anything to shoot iTunes out the sky with there DRM bullshit...

     

    reply to this | link to this | view in thread ]

  10.  
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    driveby checkout, Sep 15th, 2008 @ 5:14pm

    look out dude

    So now when you check out at Best Buy, they covertly sign you up for Napster ?

     

    reply to this | link to this | view in thread ]

  11.  
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    Anonymous Coward, Sep 9th, 2010 @ 5:12am

    Re: What Price Is It?

    MarketWatch says $54M because Napster has $67M in cash assets.

     

    reply to this | link to this | view in thread ]


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