Napster's $200M acquisition marks one of the biggest comebacks of the millennial era

Napster is acquired by Infinite Reality for $200M, aiming to transform into an interactive platform for music fans.

Napster has been acquired for $207 million by tech company Infinite Reality, which plans to transform the once-pioneering music service into a more interactive and social-first platform. This move marks a significant shift for Napster, which has evolved from its controversial origins as a peer-to-peer file-sharing service into a legitimate streaming platform.

In a press release, Infinite Reality stated its vision for Napster as a music platform where fans can engage more directly with artists and other listeners. This acquisition follows a series of ownership changes since Napster’s decline in the early 2000s. After being shut down, Napster was revived under the Rhapsody brand in 2011, rebranding as Napster in 2016. In recent years, Napster had been purchased by multiple companies, including MelodyVR, which aimed to merge music with live streaming, and Hivemind and Algorand, which sought to integrate web3 and blockchain technologies.

Infinite Reality, described as a company focused on digital media and e-commerce powered by extended reality (XR) and artificial intelligence (AI), plans to create a music platform that enhances the artist-fan relationship. "We’re creating the ultimate music platform where artists can thrive in the next wave of digital disruption," said John Acunto, Co-Founder and CEO of Infinite Reality.

The platform’s new direction includes AI-powered customer service, virtual concert spaces, and opportunities for exclusive merchandise sales. Napster’s current CEO, Jon Vlassopulos, who previously worked at Roblox, will continue to lead the company. He emphasized the potential of transforming Napster into a virtual space where fans can interact with artists, attend live performances, and purchase digital or physical products.

To date, Napster has paid over $1 billion in royalties to artists and songwriters.