New York City Best Buy Inc. said Monday it will acquire online music-sharing site Napster Inc. for about $126.8 million in cash in a move to boost its digital-media capabilities.
In a statement, Best Buy valued the deal at $121 million—or $54 million after netting about $67 million in Napster's cash and short-term investments.
The takeover is expected to close in the fourth quarter. The deal includes Napster's 700,000 subscribers, its Web-based customer-service platform and mobile capabilities.
Napster CEO Chris Gorog and other senior management will continue in those roles. Best Buy said it does not plan to relocate the headquarters or make "significant" changes in personnel.
Napster said it will postpone its annual meeting of stockholders, scheduled for Thursday, due to the acquisition agreement.