Skip to main content

Napster to be Acquired by Rhapsody

NapsterOne of the oldest internet subscription music services on the web, Rhapsody, has finally, and officially, acquired Napster subscribers as well as a host of other assets from Best Buy. However, Best Buy will retain a minority stake in Rhapsody according to a joint statement from both companies.

The acquisition is expected to close on November 30 according to the companies. Best Buy is unloading a music service that really struggled before being acquired by Rhapsody and seemingly disappeared afterwards. Financial terms of the deal have not officially been released though it does not appear that Best Buy's investment in Napster has paid off.

The electronics retailer acquired a revamped version of Napster back in 2008 which allowed the company to officially enter into the online music sector. Napster started off as the pioneer file-sharing service back in the day. The service allowed users to share songs with each other via the internet. However, lawsuits filed by multiple recording companies nearly destroyed the company, eventually leading to the selling of the trademark and brand.

Three years ago Best Buy launched an all-cash tender offer for outstanding Napster shares priced at $2.65 per share; the full acquisition was valued at $121 million. That number represented a $54 million net of approximately $67 million in cash and short-term investments. Napster recognized that it had 700,000 members when Best Buy acquired the service though it is unclear as to how many the company has now.

Despite Napster's failure, Rhapsody appears to be years ahead of its time. Over the past ten years Rhapsody worked on getting consumers interested in subscription music services. Now the entire music industry is attempting to make that business model work.

Rhapsody was owned, in part, by RealNetworks and Viacom, though those companies spun off the service back in April 2010. Since then, managers for Rhapsody have been trying to prevent upstart "all-you-can-eat" services from taking all the credit. Spotify, MOG and some other digital music services are just some of the many services that charge a monthly fee for premium services, just like Rhapsody.

Source: CNET - Rhapsody to acquire Napster (scoop)


Computers, Desktops, Laptops, Servers and the latest in Portable Tablet PCs are available from your computer rental company, Rentacomputer.com.

Talk to a Rentacomputer.com Tech Travel Agent Today!
Call Toll free 800-736-8772.
Labels:

Comments

Post a Comment

Popular posts from this blog

Congrats on Sherman Block Supervisory Leadership Institute (SBSLI) Graduation

(Sergeant Kollin Cieadlo and Chief Bob Guthrie) Sergeant Kollin Cieadlo graduated from the  Sherman Block Supervisory Leadership Institute (SBSLI)  yesterday after completing the 9-month course. Kollin joins many other Arcadia Police Department supervisors and managers who have attended this valuable program. The courses are offered through the  California Commission on Peace Officer Standards and Training  several times each year and alternate between northern and southern California. Kollin attended 3-4 day sessions each month. Students receive reading and research assignments for each session and demand a good deal of time and effort. Congratulations to Sergeant Kollin Cieadlo on his achievement. From the POST site:  The Sherman Block Supervisory Leadership Institute (SBSLI) is a program designed to stimulate personal growth, leadership, and ethical decision-making in California law enforcement front-line supervisors. Designed and imp...
Post a Comment
Read more

Christmas Care Pack for K9 Officer Zoli

Christmas came a bit early for K9 Officer Zoli and his handler, Officer Foulks! They received a care pack from Isabella at  K9 Warriors  containing an indestructible ball, doggie blanket, shampoo, insect repellent, doggie treats, and a night watch kit for Officer Foulks with coffee and candy...awesome! Isabella is a 14-year-old young lady from South Carolina who sends care packs to police and military K9 units. What a treat! Thanks Isabella!
Post a Comment
Read more

A Free Issue of Examine.com Research Digest

Examine.com is a website that provides unbiased information on supplements and nutrition.  They publish the Examine.com Research Digest (ERD), which reviews the latest studies in these areas.  I like ERD because it does a nice job of curating recent science, making it understandable and engaging for a broad audience, and explaining important background information.  They have no conflicts of interest because they don't sell anything except information.  I've been a scientific reviewer for ERD since the beginning. Examine.com is celebrating its fifth anniversary today.  To celebrate, they offered to put together a custom issue of ERD using five of my favorite articles.  I chose articles I thought my audience would enjoy.   You can download your free copy here  (PDF). If you like it and decide you want to sign up for ERD, there is a link in the PDF, or you can visit this page .  They're having a sale today, so if you're thinking about joining, ...
Post a Comment
Read more