Best Buy To Buy Napster For $121 Million

September 15, 2008 3:34 PM ET

Electronics retail giant Best Buy announced plans to purchase Napster for $121 million. Not much besides ownership will change over at Napster, as the company's current administration have worked out a deal ensuring the company's 140 employees will remain on board in their Los Angeles headquarters. As part of the deal, Best Buy will acquire Napster's 700,000 subscribers, its customer service and mobile capabilities. Of the $121 million, $67 million will go toward short-term investments. Best Buy offered double the company's Friday stock price, which was $2.65 a share. After today's disastrous decline on Wall Street, Best Buy might be wishing they waited a little longer to purchase the company.

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is Steve Jobs Coming Around to Subscription Services?
P2P Service Qtrax Hits Launch Snag

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