Breaking: Best Buy to Acquire Napster

Napster_DRM.jpgReuters is reporting that Best Buy, one of the nation’s largest consumer electronics retailers, said on Monday that it is buying Napster, the struggling online and mobile music company, for $121 million, in a move that could shake up the digital music market as competitors scramble to catch Apple.

In a public statement, the companies said the proposed acquisition includes Napster’s approximately 700,000 subscribers, its Web-based customer service and mobile capabilities, according to the report.

For now, Best Buy said that it plans to leave Napster’s 140 employees in their current Los Angeles-based office. The deal is expected to close in the fourth quarter, the report said, and that for now, Napster will hold off on its annual meeting to shareholders as a result of the announcement.