4 Thoughts On Best Buy & Napster

RICHFIELD, MN (Hypebot) –

Napster was worth even less than I thought. Given the $67 million in cash that Napster has on hand, the purchase for $121 million by Best Buy puts the valuation at just $54 million. Not much for a company with 700,000 subscribers, decent technology and a strong brand name.

This purchase is a blow for RealNetworks' Rhapsody who previously powered Best Buys download store. It's not fatal, but it isn't good news as Rhapsody struggles to gain traction. (Thanks to an alert Hypebot reader for pointing this out.)

The integration of Napster into Best Buy may confuse consumers and tarnish what is left of the Napster brand. Or is that the point? There's not much left to Napster's once powerful brand.

I'm having trouble imagining the synergies between online and brick and morter Best Buy that would help Napster grow.