Skip to main content

Napster to be Acquired by Rhapsody

NapsterOne of the oldest internet subscription music services on the web, Rhapsody, has finally, and officially, acquired Napster subscribers as well as a host of other assets from Best Buy. However, Best Buy will retain a minority stake in Rhapsody according to a joint statement from both companies.

The acquisition is expected to close on November 30 according to the companies. Best Buy is unloading a music service that really struggled before being acquired by Rhapsody and seemingly disappeared afterwards. Financial terms of the deal have not officially been released though it does not appear that Best Buy's investment in Napster has paid off.

The electronics retailer acquired a revamped version of Napster back in 2008 which allowed the company to officially enter into the online music sector. Napster started off as the pioneer file-sharing service back in the day. The service allowed users to share songs with each other via the internet. However, lawsuits filed by multiple recording companies nearly destroyed the company, eventually leading to the selling of the trademark and brand.

Three years ago Best Buy launched an all-cash tender offer for outstanding Napster shares priced at $2.65 per share; the full acquisition was valued at $121 million. That number represented a $54 million net of approximately $67 million in cash and short-term investments. Napster recognized that it had 700,000 members when Best Buy acquired the service though it is unclear as to how many the company has now.

Despite Napster's failure, Rhapsody appears to be years ahead of its time. Over the past ten years Rhapsody worked on getting consumers interested in subscription music services. Now the entire music industry is attempting to make that business model work.

Rhapsody was owned, in part, by RealNetworks and Viacom, though those companies spun off the service back in April 2010. Since then, managers for Rhapsody have been trying to prevent upstart "all-you-can-eat" services from taking all the credit. Spotify, MOG and some other digital music services are just some of the many services that charge a monthly fee for premium services, just like Rhapsody.

Source: CNET - Rhapsody to acquire Napster (scoop)


Computers, Desktops, Laptops, Servers and the latest in Portable Tablet PCs are available from your computer rental company, Rentacomputer.com.

Talk to a Rentacomputer.com Tech Travel Agent Today!
Call Toll free 800-736-8772.
Labels:

Comments

Post a Comment

Popular posts from this blog

Windows 10 Spying Concerns: Are They Still Viable?

When Windows 10 first launched many users quick to flock to the new operating system as they were in a hurry to get away from Windows 8. However, a lot of those users became unsure of Windows 10 when reports started coming in that the operating system was practically spying on everything you did. Some of the reports were completely false while others held some truth but were completely blown out of proportion. With the operating system now available for over 8 months, it's time to take a look at all the concerns people had and whether or not those worries are still relevant today. Read more about this topic on the ComputerServiceNow Blog !
Post a Comment
Read more

Apple's all new 12" MacBook and a higher-res sixth-gen iPad for 2014

Apple has a newly designed 12-inch MacBook featuring a high-resolution display, and a new 9.7-inch sixth-generation iPad with an even higher pixel count than the most current Retina display. Both are to be released next year according to knowledgeable insider Ming-Chi Kuo. Kuo, who is an an analyst working for KGI Securities , has said that Apple has a ton of major new products in the works for 2014. The biggest one being the new 12-inch MacBook which will feature what he said is an "ultra-slim clamshell form factor." He says this new and improved MacBook will bring the best of both worlds from both the portability of the 11-inch MacBook Air and the greater productivity brought by the 13-inch model. The display is said to be up to par with Apple's high-resolution MacBook Pro Retina display. Kuo says that the newest MacBook being worked on will "redefine laptop computing once again following the milestone created by the MacBook Air." Despite all the...
Post a Comment
Read more

Lenovo CEO Shares Bonus With Employees

With a large abundance of PC manufacturers out there all trying to sell you the same things, Lenovo, a Chinese multinational technology firm,  and their CEO Yang Yuanqing are implementing some generous small business tactics that may be contributing to their success. Lenovo has pushed their way into the top of PC manufacturing, surpassing $34 billion in sales. This company brings you all the day to day technology you would use including PC's, tablets, workstations, servers, electronic storage devices, and IT management software. Lenovo is also becoming a smartphone manufacturer, with rumors saying that they may even buy out Blackberry. It's hard to ignore the apparent success of Lenovo, and it's even harder not to connect it to the selfless actions of their CEO, Yang Yuanqing.   Instead of simply pocketing his $3+ million dollar bonus due to the company's success, Yang Yuanqing took it upon himself to share his bonus with his 10,000 manufacturing employee...
Post a Comment
Read more