Best Buy Gets Back To Basics, Exits Mobile Music Biz With Napster Sale
Best Buy’s digital music unit, Napster, will soon be acquired by Rhapsody International, an Internet music service provider. In the proposed deal, Rhapsody will acquire the subscribers and other assets of Napster and in return Best Buy will get a minority share in the business. In 2008, Best Buy bought Napster for $121 million, and this acquisition enabled Best Buy to enter the online music sector. We believe Best Buy initially hoped to challenge Apple’s iTunes service, but this fell short as Best Buy lacks the device and software support of the Apple ecosystem.