In a bid to challenge Apple's dominant iTunes music service, electronics retalier Best Buy plans to buy digital music service Napster for $121 million in cash. Best Buy announced on Monday it would pay $2.65 per Napster share, nearly double its closing price on Friday; the proposed acquisition includes Napster's approximately 700,000 subscribers, its Web-based customer service and mobile capabilities. However, don't expect too many changes: Napster will retain its name, along with all of its upper management, 140 employees, and headquarters based in Los Angeles.Both companies offer digital subscription services, but neither have made much of a dent in Apple, which holds more than 70% of the U.S. digital music market. "This is a very natural and appropriate time for Napster to lever up our position in the industry with a strategic bear hug from such a powerful partner," Napster Chief Executive Chris Gorog told Reuters in an interview.
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I should clarify that. Geek Squad is a waste of the consumer's money. I'm sure it's more than worth it for Best Buy to charge clueless users a huge premium and then pay some high school kid to do the work.
I could not believe Napster is still on the market. I think it's just the name that is being bought and sold. Or was it the users that is being bought?
-Luke Angel
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