Rhapsody announced that it has signed an agreement with Napster, a unit of consumer electronics retailer Best Buy. Under the terms of the agreement, Rhapsody will acquire Napster subscribers and certain other assets, and Best Buy will receive a minority stake in Rhapsody. The transaction is expected to close on or around November 30, 2011.
The transaction will combine the subscriber bases of the two services.
Jon Irwin (President, Rhapsody): There’s substantial value in bringing Napster’s subscribers and robust IP portfolio to Rhapsody as we execute on our strategy to expand our business via direct acquisition of members and distribution deals.