Napster Acquired for $207 Million

Napster, the brand that once caused a stir in the music industry, has been acquired for $207 million by Infinite Reality.

Infinite Reality plans to transform the streaming service into a platform where fans can interact in virtual spaces, attend concerts, and purchase merchandise directly from artists. This marks the highest price for Napster, which has had multiple owners over the years, including Rovio and Algorand, since its controversial file-sharing origins.

John Acunto, Co-Founder and CEO of Infinite Reality, stated, “By acquiring Napster, we’re paving a path to a brighter future for artists, fans, and the music industry at large. We’re creating the ultimate music platform where artists can thrive in the next wave of digital disruption.”

Current Napster CEO Jon Vlassopulos will maintain and expand his role. Before joining Napster in 2022, he led music at Roblox, where he was instrumental in pioneering virtual concerts that connected with millions.

Jon Vlassopulos remarked, “Napster revolutionized digital music in the nineties, and now, with Infinite Reality, we’re ready to do it again. The internet has evolved from desktop to mobile, from mobile to social, and now we are entering the immersive era. Yet, music streaming has remained largely the same. It’s time to reimagine what’s possible.”

Founded in 1999 by Shawn Fanning and Sean Parker, Napster began as a service allowing users to share MP3s before facing legal challenges that forced its shutdown in 2001. Since then, it has transitioned between several owners: Roxio in 2003, Best Buy in 2008, Rhapsody in 2011, and most recently, MelodyVR and Algorand.

Napster has embraced Web3 with initiatives like its own $NAPSTER token and aims to revive its concept of collectible, scarce downloads. As of now, it is a fully licensed streaming service offering 110 million tracks across 34 countries and claims to have paid artists and songwriters over $1 billion.

Infinite Reality envisions creating 3D virtual spaces for fans to enjoy concerts, join listening parties, and interact with artists while also distributing physical and digital merchandise. Vlassopulos described an immersive experience where fans could feel like they’re in a virtual venue watching shows with friends.

The collaboration will also include cross-promotion with Infinite Reality’s other entertainment branches, including esports teams, aiming to connect artists with a younger, gaming-oriented audience.

Amish Shah, chief business officer of Infinite Reality, commented, “We can think of no better use case for our technology than music artists pushing the boundaries of what’s possible.”

The fate of Napster’s newest evolution remains uncertain as previous revitalization attempts have met with mixed success and the concept of metaverse music experiences has not yet achieved mass appeal. The acquisition is expected to close soon, with new features to follow as Infinite Reality works to further evolve the brand.

Edited by James Rubin