Monday, September 15, 2008

Napster Acquired By Best Buy

Los Angeles-based Napster and electronics retailer Best Buy said this morning that they have entered into a definitive agreement where Napster will be acquired by Best Buy. According to the firms, Best Buy will pay $2.65 per share in cash for all outstanding Napster shares, or approximately $121M in total for the firm. Including Napster's current cash and short term investments, the deal has a net value of approximately $54M. Best Buy said that Napster CEO Chris Gorog and other key members of Napster's senior management will join Best Buy as part of the acquisition. The retailer also said that it does not plan to relocate Napster's Los Angeles headquarters, or make significant changes in personnel at the firm. Napster employs 140. Best Buy said that Napster had fiscal 2008 revenues of $127.5M. Napster was advised in the sale by UBS Investment Bank and O'Melveny & Myers LLP; Best Buy was represented by Robins, Kaplan, Miller & Ciresi L.L.P.