Best Buy acquires Napster

The struggling L.A.-based music service is being bought for about $121 million. It’s really $54 million because the deal includes $67 million of cash and short-term investments that already have been made. Best Buy gets Napster's 700,000 digital entertainment subscribers, Web-based customer-service platform and mobile capabilities. "Best Buy intends to use Napster's capabilities and digital subscriber base to reach new customers with an enhanced experience for exploring and selecting music and other digital entertainment products over an increasing array of devices," Best Buy President and COO Brian Dunn said in a statement. Napster said CEO Chris Gorog will remain in his post. The company does not plan to relocate from L.A. (there are only about 40 employees here). Stories from MarketWatch and Cnet. Also, here's the press release.