Napster, the original music sharing service, acquired for $207M
What's the story
Napster, the pioneering music sharing platform that revolutionized the industry over 25 years ago, has been acquired for $207 million by 3D technology company Infinite Reality.
The company plans to leverage the Napster brand in marketing within the metaverse.
Infinite Reality CEO John Acunto told CNBC, "When we think about clients who have audiences — influencers, creators — I think it's very important that they have a connected space that's around music and musical communities."
Metaverse marketing
Infinite Reality's vision for Napster
Acunto envisions creating virtual 3D spaces where music enthusiasts can attend concerts or listening parties together.
He also plans to provide a platform for musicians and labels to sell both physical and digital merchandise.
He said, "We just don't see anybody in the streaming space creating spaces for music."
This acquisition is part of a trend where iconic technology brands from the past are being revived, following in the footsteps of Kodak, Nokia, and McIntosh.
Evolution
Napster's journey from file-sharing to streaming service
Founded in 1999 by Shawn Fanning and Sean Parker, Napster was the first major peer-to-peer file-sharing app.
It let PC users swap MP3 files for free, letting them create collections of digital music.
However, the record industry accused Napster of enabling piracy, resulting in lawsuits from heavy metal band Metallica and the Recording Industry Association of America.
After bankruptcy, Napster's assets were sold off to a series of owners before being acquired by blockchain company Algorand in 2022.
Strategic acquisition
Infinite Reality's interest in Napster's licensing agreements
Napster holds official licenses to stream millions of tracks, making it an attractive acquisition target for Infinite Reality.
The company's CEO said that their version of Napster will "disrupt legally."
Acunto also expressed interest in Algorand's blockchain technology background, as his company also develops Web3 technology.
This partnership will enable Napster to offer more social features, digital merchandise and shopping opportunities for artists and fans alike.