Napster Sold for $207 Million 20 Years After Shutting Down

Napster’s Journey Through Time

Napster was sold for an impressive $207 million, two decades after its closure.

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Founded in 1999, Napster was a pioneering platform for file sharing that unfortunately catalyzed the rise of pirated software and applications, later emulated by services like Limewire and Thepiratebay.

Legal Struggles and Evolution

Later that same year, the Recording Industry Association of America (RIAA) sued Napster for illegally distributing copyrighted materials. Metallica infamously joined the lawsuit in 2000. By 2002, Napster filed for bankruptcy, leading to its closure following a court ruling. In 2011, Rhapsody acquired Napster and rebranded it as a paid streaming service, officially adopting the Napster name in 2016.

Although Napster is still operational today with over 110 million licensed tracks available in 34 countries, it struggles to compete with larger platforms such as Apple Music, Spotify, Amazon Music, Tidal, and YouTube.

Now, more than 20 years after its initial shutdown, Napster has been sold to Infinite Reality Company for immersive technologies for $207 million.

Future Plans for Napster

According to a report from Diversity, the acquisition was finalized on March 25. Infinite Reality aims to transform Napster into a rejuvenated platform that provides a fresh experience for users. Alongside restoring Napster as a music streaming service, the company plans to develop it into a “social music platform” that prioritizes active fan engagement over passive listening, allowing artists to “connect with, own, and monetize their relationships with fans.”

Among the upcoming changes are the introduction of virtual 3D spaces for fans to attend concerts, as well as opportunities for musicians and labels to sell both digital and physical merchandise. Artists will also gain access to more analytics and indicators to better understand user behavior on the platform.

John Akunto, co-founder and CEO of Infinite Reality, stated through Diversity: “By acquiring Napster, we are paving the way for a brighter future for artists, fans, and the music industry as a whole. This strategic move aligns with Infinite Reality’s vision to transition the internet from a flat 2D experience to a dynamic 3D environment.”