Best Buy Sells Napster to Rhapsody
Rhapsody and Napster, two of the first names in digital music, have joined forces. Rhapsody announced Monday that it has purchased Napster's assets from Best Buy. The deal will close in November, and the purchase price is undisclosed.
The merger is seen as an attempt by Rhapsody to compete with newer music services such as Spotify, MOG and Rdio, all of which, like Rhapsody, have reached deals with consumer electronics manufacturers.
"This deal will further extend Rhapsody's lead over our competitors in the growing on-demand music market," Jon Irwin, president of Rhapsody, said as part of the announcement. "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."