Best Buy (BBY) announced they have signed in to an agreement to purchase Napster for $121 Million. The LA Based staff will remain on board, including the CEO Chris Gorog. The digital entertainment community of over 700,000 subscribers will still enjoy the same benefits as always.
Stock holders will be pleased to know that Best Buy purchased the shares at twice the amount they closed for on Friday. The shares now valued at $2.64 are slightly less than a year ago, but as of Friday, the price almost doubled for new holders of the stock.
Napster is proving to be a good buy for Best Buy, as the revenue last year increased over 15% of the previous fiscal year in 2008. Napster had recently launched an MP3 store that is one of the worlds largest, pushing the end of year revenue to a high $127.5 million.
Efforts to change the face of such digital music companies like Napster, Rhapsody, and Kazaa have been exhausted. The interface will remain the same, the staff is to remain the sameâˆšÂ¢â€šÃ‡Â¨Â¬Â¶so what has changed? Not much, you will continue to enjoy the same music as before, your stocks may go up slightly from here on out, and Best Buy, who knows what they will do in the long run. Best Buy acquired Sam Goody music chain stores in 2000 for $700 million, later to give the chain away, so stay tunedâˆšÂ¢â€šÃ‡Â¨Â¬Â¶.there is always more to come.