Best Buy Makes Napster Bid
Mon, 15 Sep 2008 13:28:31
Best Buy has announced plans to take over Napster for around $126.8 million in cash. The deal values Napster shares at a 95-percent premium, bringing their $1.36 value (as of last Friday) up to $2.65 per share.
In a statement, Best Buy valued the buyout deal at $121 million, with a projected fourth quarter close. While Best Buy will assume control of Napster's 700,000 subscribers, the company plans on keeping chief executive Chris Gorog and other senior management officials. (Napster has nearly 140 employees; their Los Angeles office has no plans to relocate.)
—The ARTISTdirect Staff