Best Buy Coughs Up $54 Million For Napster
MarketWatch reports that Best Buy has decided to toss $54 million into an acquisition of Napster. All told, the deal amounts to around $121 million, with about $67 million headed towards getting cash and short-term investments from Napster's balance sheet. "The deal will give Best Buy an online digital music retail outlet as well as a subscription streaming service that has about 700,000 subscribers. That could help Best Buy to compete against retail giant Wal-Mart, which has its own online digital music offering."
Good work, Best Buy. That takes effort.
$54 million for just a name? Sounds a little high to me.
If you can read this... 01110101 01110010 00100000 01100001 00100000 01100111 01100101 01100101 01101011
That's a lot of Monster Cable money your bosses just threw away. Betcha they didn't buy a warranty, either.
...how this wasn't a giant waste of cash and a sign that Best Buy is run by PHBs? Honestly, I understand the reasoning (online is where music distribution is, at this point, which cuts into their bottom line), but the Napster brand is, at least last I knew, pretty much useless as a brand. If I am wrong, someone please correct me.
I think this could eventually give Best Buy some leverage in selling electronics because they will package downloads with the sale of mp3 players. I think they may be putting together enough clout to give Apple a good scare.
Crap! I just kissed my karma good-bye.
In your face, Steve Jobs!! You and your lame iTunes store are screwed now!
Expect all kinds of innovation from this combined entity... Like 98.9 cent downloads. Store name that ends in "ster". More.
I'm a big tall mofo.
Investors are always saying stupid things like " this could help them compete with Walmart which has its own digital music service". Is walmart's digital music service good? Is is profitable? Does it do anything now, or will it ever, to contribute to the companies bottom line in any way what-so-ever?
Most of the time, just like this time, its just ridiculous.
Well.. maybe. Or Maybe not. But Definitely not sort of.
Same as comment title. See above.
at Napster a while back and a few other digital stores and I just can't justify paying a $1.00 for a song that, at most stores, I don't really own any way.
That which does not kill me only postpones the inevitable.
You know, I tried hard to think of something funny here. There's just not a punch line you can add to this.
To paraphrase Hank Hill, this acquisition is the feces that is produced when shame eats too much stupidity.
Dewey, what part of this looks like authorities should be involved?
Does that mean that the Geek Squad will be replaced by the Napster Squad? Dang, they'll have to repaint all their cars!!
Attention all planets of the Solar Federation! We have assumed control! - Neil Peart
A few days ago, there was a article about Best Buy planning to have Windows Gurus to push Vista. WIth the acquisition of Napster, I am not sure what kind of monster will be created.
All the engineers from napster went off to setup their own music sites, the most high profile children of Napster are of course Snocap, which was setup by Shawn after napster 1.0 died and later got acquired by imeem.com which was also started by napster engineers and has become the most popular web2.0 music site (over twice the users of last.fm).
There's also finetune and a few other small music projects that can trace some lineage to the original napster. Every single one of these descendants from napster are a whole lot more interesting and innovative than what the Napster brand ever did.
Can't wait for Best Buy to add the "Extended Warranty" option to my on-line music purchases... :-)
It must have been something you assimilated. . . .
http://www.penny-arcade.com/comic/2003/12/05/
I'm sure this will work out perfectly for them. I mean, take a look up here at Canada. Best Buy Canada is owned by Future Shop. And Future Shop opened their own digital music download store, too. It's called Bonfire, and...
Wait, what's that? Oh, okay, it wasn't really their own download store. It was just Puretracks with a custom skin on it. In any case, it blazed their trail into the future of music downloads and...
Huh? Oh. Okay, it turns out Bonfire was a massive flop and was shut down this year.
Well, in any case, I'm sure that Best Buy USA's third-party, rebranded online music store will do much better than Best Buy Canada's third-party, re-branded online music store did.
PS: To give you an idea of how well this is going to turn out, this is the same company that decided it would be a good idea to sell "branded" mp3 players. Basically it was 128MB player that "came with" a few tracks, all for the low, low price of $169. Mmm, dollar-store MP3 player with DRM'd tracks for more than the cost of an iPod. Success!
UTF-8: There and Back Again
Required tag: deadhorse.
people still use napster?
I can't see it working just because when you buy a Windows-Media based distribution system you're locked into a platform, a delivery system, a microsoft support contract, and a range of not-iPod music players.
Losing the DRM might help (especially re non-WMA players) but that still leaves the biggest problem of them all - few of the non-iTunes / non-indy online distributors can cut a deal with the recording industry that gives them the possibility of standing out from the crowd. (and its a big crowd with little differentiation)
To add extra suck - its a bit late in the gameplay for another company to do an apple and change the game. The rules have been set.
I have been a user for about 10 years. This ends Feb 2014. The site's been ruined. I'm off. Dice, FU
Here's what I don't get: Napster started as a free app to download pirated music. Now after many changes, it's being sold for millions of dollars. What are they exactly bringing to the table? Just the subscribers?
The sale of myspace for an obscene amount of money makes more sense than this(eyes to see ads). Still not quite getting the Napster sale.
Then again, this is the same world that the "I'm rich!" iPhone app sold for a while.
I used to work for best buy. And have seen them make acquisitions that fail miserably because they pulled the plug too soon. The only exception that I can think of is the Geek Squad purchase. JMHO but this will turn into something else they will push on you right before the service plan pitch and right after the magazine offers... when you bought a vacuum cleaner.
Because people generally don't like these kinds of offers it may just flop and fade into the past like so many other things BBY has done. BBY should get back to the basics of selling consumer electronics that made them famous in the first place. Fry's electronics and others can do it... why not BBY?
That the GP was on the pro-POTS-over-Cat-5 side, although his comment is at best vague.
Best Buy has been including software in many mp3 players for the 'Best Buy Music Store', software branded off the Rhapsody music service. This is a blow to Real's music service, which actually has a pretty amazing selection.
Somebody's a bit off....
Experience teaches only the teachable. -AH
OK, in my defense, while I didn't read the summary past the first line, I did RTFA (which didn't mention $121M)
Experience teaches only the teachable. -AH
Is for Best Buy to hire Larz to pimp Napster. Best Buy goes down the tubes like AOL/Time Warner. Larz goes bankrupt. And Shawn Fanning buys Napster for a dollar.
Wired is running the same story, but with a $121 Million price tag
Best Buy is paying $121 million. However, Napster has about $67 million cash and short term investments, and since Best Buy buys the whole, complete company, they will aquire these $67 million as well, so their actual cost is only $54 million.
Great. I work for the company that Napster hired to do all their customer service/tech support.
Guess I'll be out of a job soon. =(
LOL - totally right.
"Hey kids - remember when you used to download N'Sync off Napster? Back in 2001? When that first iPod came out with the black text screen, and Napster was synonymous with 'free' and 'rebellious?'
Good news! Napster is still cool! It's, like, 'phat' and stuff! And now we own it! So it's not free or rebellious anymore. But come on back and give us some money!"
...downloaded it for free
Suckers!!!!
"We live in a global world" - Harvey Pitt, former Securities and Exchange Commission Chairman
Worst Buy and Crapster: Now that's a marriage made in hell!
How ya like dat?