• October 3, 2011

On-demand music service Rhapsody will acquire, Napster, the company that upended the music business through file sharing before turning to a subscription-based model. Terms of the deal were not disclosed, though Napster parent Best Buy Inc. will get a minority stake in Rhapsody.

"This deal will further extend Rhapsody's lead over our competitors in the growing on-demand music market," said Jon Irwin, president, Rhapsody, in a release announcing the deal. "There's substantial value in bringing Napster's subscribers and robust IP portfolio to Rhapsody as we execute on our strategy to expand our business via direct acquisition of members and distribution deals."