Best Buy continues to do interesting things. It has its Geek Squad service that by all accounts has been a rousing success. It has its deal with Apple allowing it to sell a wide array of Apple products in its stores. Recently it has begun dabbling in selling musical instruments. And now it's buying Napster, presumably to bolster its online offerings. This also just further distinguishes Best Buy from its struggling competitor Circuit City.
Best Buy Inc. has agreed to buy Napster Inc. for $121 million, a deal that the consumer-electronics giant said it will use to reach new customers.
The deal, which includes $67 million of cash and short-term investments on Napster's books, values the provider of digital music at $2.65 a share, nearly double Friday's closing price of $1.36.
The acquisition, set to close in the fourth quarter, includes Napster's 700, 000 digital entertainment subscribers, Web-based customer-service platform and mobile capabilities.