Napster sold to London startup MelodyVR in surprise $70m deal

guest · Aug 26, 2020

Napster sold to London startup MelodyVR in surprise $70m deal
Acquisition by firm which streams virtual reality gigs will offer ‘next-generation’ service
August 25, 2020
https://www.theguardian.com/music/2020/aug/25/napster-sold-british-startup-melodyvr-surprise-deal

A British music tech startup has struck a surprise $70m (£53m) deal to buy Napster, one of the pioneers of the music streaming revolution.

MelodyVR, which films and streams gigs fans watch with virtual reality headsets, is taking over Rhapsody International, which operates as Napster and is owned by Nasdaq-listed RealNetworks.
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AIM-listed MelodyVR hopes to create a music platform combining Napster, which began life in the 1990s as an illegal downloading platform, with its immersive live performances. Napster, which has 3 million users, has a library of 90m licensed tracks.

Anthony Matchett, chief executive of MelodyVR, said: “MelodyVR’s acquisition of Napster will result in the development of the first ever music entertainment platform which combines immersive visual content and music streaming.

“Our purchase of Napster, one of the music industry’s original disrupters, is born out of a wish to present a truly next-generation music service.”
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The company, which raised $15m from investors on Tuesday, has funded the deal through a combination of cash and shares. RealNetworks is to receive $26.3m: a $15m cash payment and the remainder as 200m MelodyVR shares, giving it a stake of about 11.5% in the business. The rest of the $70m deal involves MelodyVR taking on $44m in future payment obligations to music companies and other partners that are on Napster’s books.
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MelodyVR: MelodyVR to acquire to acquire music subscription service Napster

MelodyVR is delighted to announce that it is acquiring Rhapsody International, which does business as Napster, paving the way for a unique music service that will offer both immersive live performances and music streaming – for the first time ever.

The pairing of the two companies represents the pioneers of music streaming and live music VR coming together under one roof. It’s incredibly exciting to be unifying complementary platforms and fantastic audiences, rooted in a love of music and a deep desire to offer the very best experience to artists, fans, the wider music community and brands.

For the time being, Napster and MelodyVR will continue to operate as independent businesses.
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Napster sold to London startup MelodyVR in surprise $70m deal

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