Rhapsody Sings The Sweet Tune of Acquisition to Napster

CNET broke major acquisition news today by confirming that on-demand music service Rhapsody is purchasing its longtime competitor Napster. As outlined by the terms of the terms, Rhapsody will acquire all Napster subscribers and other assets.

As part of the deal, Best Buy – the current owner of Napster – will get a minority stake in Rhapsody. In 2008, Best Buy gobbled up Napster in a deal estimated to be worth in excess of $120 million.

From CNET:

As for Rhapsody, this is a company that appears to be years ahead of its time. The company spent much of the past decade trying to get consumers interested in subscription music services. Now, the entire music industry is trying to make that business model work.

According to published reports, the deal will close on November 30th. It still isn’t known, however, just how much Rhapsody paid to acquire the company.

“The acquisition comes at a time when newer startups like Spotify, MOG and Rdio are stealing the spotlight from older brands like Napster and Rhapsody,” TechCrunch reported in its coverage today.