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.

E-say:

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.