Best Buy — new Napster owner
p2pnet news view | Music:- Best Buy has splashed an eye-popping $121 million on Napster, the P2P file sharing application which started it all but which has long been a-mouldering its grave, despite apparently limitless infusions of cash from people with apparently bottomless pockets.
The name may be worth a few bucks for advertising and/or promotional purposes, but Napster as a going P2P concern?
“Napster has an accumulated deficit of $199 million,” p2pnet recently quoted Coolfer as saying.
Napster was, “fighting for life when the consumer market has clearly voiced its indifference to music subscriptions,” said the story. “What little demand exists for subscriptions won’t provide adequate return for the current number of players. Somebody needs to drop out.”
Nonetheless, “Best Buy this morning announced a deal to buy online music site Napster for $2.65 a share in cash,” says Barron’s, adding:
“That comes to $121 million, or $54 million net of Napster’s $67 million in cash and short term investments as of June 30. The deal is expected to close in the fourth quarter.”
It also ensures Napster CEO Chris Gorog and other “key senior managers” will remain employed
Amazing.
a-mouldering its grave – Napster abandons US universities, August 26, 2008
p2pnet – Napster accumulated deficit of $199 million, August 12, 2008
Coolfer – Napster’s Descent Continues as Paid Subscribers Drop 6.8%, August 12, 2008
Barron’s – Best Buy To Acquire Napster For $2.65/Shr In Cash, September 15, 2008
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September 15th, 2008 at 1:03 pm
Two thoughts:
Another wall street adviser bungle?
What’s the hidden catch?
September 15th, 2008 at 8:10 pm
Anyone putting money into this carcass is either an idot or drug crazed, the entire company has nothing to offer, anyone with a clue could have picked up a dozen p2p type companies for this amount of money along with their intellectual propety rights, Napster is worth the same as the src code for Open Nap, and I can assure you its not worth millions.
Idiots with too much money should be avoided ay all costs.
September 15th, 2008 at 10:15 pm
They needed a tax write-off.
September 17th, 2008 at 5:59 pm
This confirms that Best Buy is run by lunatics.