Music subscription service Rhapsody has moved to acquire rival Napster from retailer BestBuy for an undisclosed sum.
Under the terms of the acquisition, for which financial details haven’t been revealed, Rhapsody will be getting all of Napster’s subscribers and assets while BestBuy will get a minor stake in Rhapsody.
BestBuy, which purchased Napster back in 2008 for $122 million in cash, wanted to turn the service into a music brand, incorporating the service in the smartphones sold from its retail stores. However, the efforts failed to materialise and now, BestBuy simply wants to wash its hands off it.
Rhapsody claims that the subscribers and intellectual property that comes with the acquisition will help it expand in the music subscription market.
"This deal will further extend Rhapsody's lead over our competitors in the growing on-demand music market," Rhapsody president Jon Irwin said.
"There's substantial value in bringing Napster's subscribers and robust IP portfolio to Rhapsody as we execute on our strategy to expand our business via direct acquisition of members and distribution deals. This is a 'go big or go home' business, so our focus is on sustainably growing the company" Irwin said reports the Lost Angeles Times.