Rhapsody Acquires Napster

RHAPSODY NABS NAPSTER: Rhapsody acquired Napster’s subscribers and other assets, with previous owner Best Buy receiving a minority stake in the combined company. "This deal will further extend Rhapsody's lead over our competitors in the growing on-demand music market," said Rhapsody President Jon Irwin. "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. And I really look forward to meeting Shawn Fanning. What do you mean he no longer works there?” The transaction combines the subscriber bases of the two largest premium on-demand music services in the U.S. "Rhapsody has demonstrated that it has what it takes to build a profitable business in the increasingly competitive on-demand music market," said Best Buy SVP/GM Entertainment Chris Homeister. "We are confident they are the right partner to provide Napster's existing subscriber base with an immersive digital music experience moving forward. Lord knows we didn’t know what to do with it." (10/3p)