Back around 1999 and 2000 when Napster was the place to go when you wanted to get your hands on music, we certainly wouldn’t have expected that almost 10 years later, they’d have gone through so much yet still able to survive. Not only that, we wouldn’t have expected that out of anybody that could have acquired the service, that it would be Best Buy.
Today Best Buy announced that it intended to buy Napster for about $121 million. Included in the acquisition are the subscribers (about 700,000 of them) and other aspects of the business like the web-based customer service and mobile capabilities. Best Buy will also take on Napster’s 40 employees which seems like a small team, doesn’t it?
Now that iTunes has become the number one music retailer, perhaps Best Buy is hoping that their purchase of Napster will give them the boost that they need to compete with Apple? To us this seems like a decent buy for Best Buy. In the announcement, the company said, ” Best Buy believes that Napster has one of the most comprehensive and easy-to-use music offerings in the industry, including streaming music, music subscriptions, the ability to purchase individual tracks, albums and mobile offers.”
So, what do you think? Is this a good buy for Best Buy?