Best Buy to buy Napster for $121M

[rdowns]

They don't get it, it's not the store, it's the combination of the store, iPod and iTunes.

Link

Creating what could be a potent competitor to Apple Inc.'s iTunes, Best Buy Inc. agreed to buy Napster Inc. for $121 million.

The deal values Los Angeles-based Napster (NASDAQ:NAPS) at $2.65 a share, almost twice its Friday closing price of $1.36. Included in the purchase price are Napster's 700,000 digital entertainment subscribers and its mobile and Web-based customer-service capabilities.

"Best Buy intends to use Napster's capabilities and digital subscriber base to reach new customers with an enhanced experience for exploring and selecting music and other digital entertainment products over an increasing array of devices," said Richfield, Minn.-based Best Buy (NYSE:BBY) president and chief operating officer Brian Dunn.

Napster CEO Chris Gorog and other senior executives will retain their jobs, the company said.

Napster in May began selling songs in the unrestricted MP3 format as well as restricted tracks through its subscription service in an effort to gain traction against Cupertino-based Apple's (NASDAQ:AAPL) iTunes service.

 

[Sdashiki]

Napster hasnt been viable since 1999, and it was free then.

 

[iGary]

They don't get it, it's not the store, it's the combination of the store, iPod and iTunes.

No one seems to get it, which is why iTunes is the number one music retailer in the Unites States.

 

[keysersoze]

A negative plus a negative does NOT equal a positive.

Bestbuy and Napster suck.