Best Buy Co., Inc. (NYSE: BBY), a multinational retailer of technology and entertainment products and services, and Napster Inc. (NASD: NAPS), one of the most recognized brands in digital music and a leading provider of online music for the consumer market, recently announced that the two companies have entered into a definitive merger agreement for Best Buy to commence a tender offer for all outstanding Napster shares at a price of $2.65 per share in cash.
With an aggregate purchase price of roughly $121 million (or $54 million net of approximately $67 million in cash and short-term investments of Napster as of June 30, 2008), the proposed acquisition includes Napster’s 700,000 digital entertainment subscribers, its Web-based customer service platform and mobile capabilities. The transaction is subject to customary closing conditions and is expected to be completed during the fourth calendar quarter.
Brian Dunn, the president and chief operating officer of Best Buy stated that, “This transaction offers Best Buy a recognized platform for enhancing our capabilities in the digital media space and building new, recurring relationships with customers. Over time we hope to strengthen our offerings to consumers, who we believe will increasingly seek devices and solutions that enable them to access their content wherever, whenever and however they want.”
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