New York (September 16, 2008)--Amidst Monday�s news of large-scale buyouts like Bank of America�s taking of Merrill Lynch and failures like Lehrman Brothers, consumer electronics box retailer Best Buy announced plans to purchase the struggling digital music service Napster for $121 million.

The deal, designed to help bolster the retailer�s online offerings, will net Best Buy the 700,000 subscribers in Napster�s fold, along with its customer service entities, mobile entertainment efforts, and the roughly $67 million in cash and short-term investments held by the internet company--making the net cost of the deal $54 million. Shares are being purchased by Best Buy for $2.65, nearly twice the amount of last Friday�s closing price.

The digital firm�s management is expected to stay on with Napster, and likewise, the company and its 140 employees will stay in the company�s current headquarters in L.A. The move comes on the heels of last month's announcement to roll-out musical instrument and recording equipment sales in 75-85 Best Buy stores.