Publication: The New York Times
Title: Rhapsody to Acquire Napster in Deal With Best Buy
Article by: Ben Sisario
Rhapsody is acquiring Napster from Best Buy in a deal that is expected to be wrapped up by the end of November. Rhapsody is absorbing all Napster subscribers as well as other Napster assets. As part of the deal, Best Buy is getting a minority ownership in Rhapsody.
Strategy-wise, this deal could give Rhapsody a leg up in the competitive digital music service market, especially since Facebook recently announced its new media-sharing features. Facebook had made partnerships with music service companies like Spotify, Rhapsody, Rdio, MOG, Slacker and Turntable.fm. Napster was left out.
Chris Homeister, SVP and GM of entertainment for Best Buy said,
“Rhapsody has demonstrated that it has what it takes to build a profitable business in the increasingly competitive on-demand music market…We are confident they are the right partner to provide Napster’s existing subscriber base with an immersive digital music experience moving forward.”