Best Buy to buy Napster for $121 million

Consumer electronics retailer Best Buy Co. Inc said today that it plans to
buy digital music service Napster Inc for $121 million in cash. Best Buy said it
will give $2.65 per share.

Included in the deal is approximately $67 million in cash and short-term
investments held by Napster, meaning the net price of the deal would be $54
million, the companies said.

The companies said the proposed acquisition includes Napster's approximately
7,00,000 subscribers, its web-based customer service and mobile capabilities.

Chris Gorog, CEO, Napster and key members of the senior management have
entered into employment agreements, effective at closing, to continue as the
Napster leadership.

The transaction is expected to close during the fourth calendar quarter.

Best Buy expects Napster and its 140 employees to remain at its current Los
Angeles headquarters. Napster also said it would postpone its annual meeting in
connection with the Best Buy agreement.