Best Buy Acquires Napster
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Best Buy has bought one of the old, familiar names of online music. Napster is now part of Best Buy:
“NEW YORK – Consumer electronics retailer Best Buy Inc. said Monday it will acquire online music-sharing site Napster Inc. for about $126.8 million in cash in a move to boost its digital media capabilities.
Best Buy will begin a tender offer for all outstanding Napster shares for $2.65 per share, representing a 95 percent premium to the stock’s closing price Friday of $1.36 per share.”
link: Best Buy will acquire music-sharer Napster
With social network sites like MySpace offering music to its audience, Best Buy has joined a very competitive sector. At the price paid, it is questionable whether the Napster acquisition is the ‘best buy’ at this point.
Catherine Forsythe