Monday, September 15, 2008

Best Buy picks up Napster for a song

Despite my abiding interest in digital delivery, I have to say that this acquisition took me completely by surprise, since I had imagined that Best Buy had the online music store thing all figured out already. Silly me. Best Buy Agrees to Purchase Napster for $121 Million

Sept. 15 (Bloomberg) -- Best Buy Co. agreed to buy Napster Inc., the pioneer of digital downloading of music, for $121 million.
Best Buy, the largest U.S. electronics retailer, will pay $2.65 a share, almost double Los Angeles-based Napster's closing price on Sept. 12, the companies said today in a statement.
Best Buy, based in Richfield, Minnesota, has tried to move music sales online as demand for compact discs wanes. Best Buy and Real Networks Inc. started a music-downloading test that ran from August 2007 to January, selling digital copies of songs by monthly subscription or individually.

Interesting. It also makes me wonder how many other digital delivery companies are still lurking around, not-yet-acquired by the big dogs. Clearly, I have more homework to do.

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