Best Buy Acquires Napster

Posted: September 15th, 2008 | Author: Catherine | Filed under: General | Tags: , , , , , | No Comments »

Best Buy has bought one of the old, familiar names of online music. Napster is now part of Best Buy:

“NEW YORK – Consumer electronics retailer Best Buy Inc. said Monday it will acquire online music-sharing site Napster Inc. for about $126.8 million in cash in a move to boost its digital media capabilities.

Best Buy will begin a tender offer for all outstanding Napster shares for $2.65 per share, representing a 95 percent premium to the stock’s closing price Friday of $1.36 per share.”

link: Best Buy will acquire music-sharer Napster

With social network sites like MySpace offering music to its audience, Best Buy has joined a very competitive sector. At the price paid, it is questionable whether the Napster acquisition is the ‘best buy’ at this point.

Catherine Forsythe