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News
Best Buy Snatches Up Napster
Sunday, September 14th, 2008 at 4:00 PM - by Jeff Gamet
Best Buy looks ready to give the music subscription market a try and has agreed to purchase the iTunes Store competitor Napster. Including investments Bust Buy has already made in the online music company, the deal will total about US$121 million.
The deal will give Best Buy access to Napster’s 700,000 subscribers along with what the big box retailer called "innovative mobile capabilities." It also gives the company a new platform to use to help push the non-iPod portable media products it sells.
So far the buyout looks to be good news for Napster since it will see a healthy cash infusion from the deal. Best Buy, however, is likely hoping that it doesn’t have to tell investors later on that it overpaid for the company.
Napster’s purchase will cost Best Buy $2.65 per share in cash. A closing date for the deal has not yet been announced.
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