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Best Buy Acquires Napster For $121 Million

Napster.jpg

Not content to be the blue ribbon next to Circuit City's red dud, Best Buy will acquire online entertainment originator Napster for a neat $121 million. The all-cash tender offer snaps up Napster stock at $2.65 per share with an eye toward Napster's 700,000 subscribers. For its part, Best Buy will beef up Napster's ability to woo content from record labels and movie studios, while also encouraging hardware manufacturers to get into the online entertainment business - with Napster.

But with the crowded habitat of online entertainment - especially music - Best Buy and Napster may have a tough go of it. Especially concerning should be the two huge upcoming social networking expansions into the musical arena: MySpace Music and whatever Facebook is planning.

Best Buy nabs Napster for $121 million [CNet]

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