Reuters report Best Buy to bid $121m for Napster
15th September 2008 5:15 pm
According to a report by Reuters published Monday the online music site Napster has attracted a bid of 121 million USD from high street electronics firm Best Buy.
Napster has postponed its annual meeting the wake of the Best Buy agreement and the current board lead by Chris Gorog have entered into employment agreements aimed at letting them continue as the Napster management.
The site was an early pioneer of illegal music trading before moving into mainstream online music sales. In 2002 Bertelsmann bought the site for $8m. The Best Buy offer works out as $2.65 a share which is more than double what the company is currently valued at. Key to the proposed deal is the 700,000 strong Napster used-base.
Napster has been facing the threat of n internal power-struggle started by by three investors who criticised the current management’s strategy in competing with iTunes. In the last year the company’s share price has lost 60 percent of it’s value.
Read the full article here at Reuters : Best Buy to buy Napster for $121 million
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