Retailers News South Africa

Best Buy brings Napster in from the cold

Still keeping its head above water in spite of the US economic downturn, Best Buy has evidently decided to make a strategic move into a new business area by purchasing legendary online music service Napster - which hasn't been doing all that well since it went legit.

Best Buy has announced it will acquire troubled online music store Napster for US$121 million.

The deal includes $67 million of cash on Napster's balance sheet and values the Los Angeles-based Internet music store at roughly twice its Sept. 12 closing stock price.

Richfield, Minnesota-based Best Buy, one of the largest retail chains of consumer electronics goods, declined to comment.

Read the full article here.

Let's do Biz