Best Buy Buys Napster
September 15, 2008 at 7:54 AM (PT)
BEST BUY has announced plans to buy NAPSTER for $121 million in cash. The consumer electronics giant will pay $2.65 per share, nearly double the amount of last FRIDAY's closing price, REUTERS reports.
The deal includes NAPSTER's approximately 700,000 subscribers, its Web-based customer service and mobile capabilities, as well as approximately $67 million in cash and short-term investments held by NAPSTER, which makes the overall price of the deal $54 million. NAPSTER CEO CHRIS GOROG and key members of senior management have entered into employment agreements, effective at closing, to continue as the NAPSTER leadership.