Best Buy To Snag Napster

Written on
Sep 15, 2008 
Kathleen  |

stockticker.jpgADOTAS – Best Buy plans to snap up Napster for $121 million in cash, or $2.65 a share (double its $1.36 closing price on Friday; a year ago, it was trading at more than $3 a share).

The deal includes $67 million in Napster’s cash and short term investments, making the net price worth about $54 million.

Best Buy said it plans to use Napster’s platform to pad out its own digital delivery platform and build relationships with its customers. The proposed buy includes Napsters 700,000 subscribers, its online customer service model and its mobile capabilities.

Napster’s executive team will remain in place.

Kathleen comes to ADOTAS with almost a decade of writing experience at consumer and business publications. Most recently, she was an editor at First Magazine. Before that, she was an editor at The New York Sun and Thomson Financial’s Investment Management Weekly.

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