Tech company Infinite Reality has acquired music streaming platform Napster for $207 million, marking another chapter in the brand's evolution from its controversial origins as a file-sharing service.
The acquisition aims to transform Napster into an immersive social music platform where fans can directly engage with artists through virtual reality experiences, digital merchandise sales, and metaverse-style concert venues.
Under the deal, Napster CEO Jon Vlassopulos will continue leading the company. Vlassopulos, who previously headed music initiatives at Roblox, brings experience in virtual concerts having worked with artists like Lil Nas X and Twenty One Pilots.
"Napster revolutionized digital music in the nineties, and now, with Infinite Reality, we're ready to do it again," said Vlassopulos. The platform envisions fans attending exclusive virtual shows, interacting with artists in digital spaces, and purchasing both physical and digital merchandise.
The deal represents a major value increase from Napster's previous $70 million sale to MelodyVR in 2020. The streaming service reports having paid over $1 billion in royalties to artists and songwriters to date.
Infinite Reality, valued at $12.25 billion, sees potential in combining Napster's music licenses with immersive technology. The company plans to leverage its existing properties, including esports teams and a drone racing league, to promote the new music offerings.
This acquisition adds another dimension to Napster's journey from its 1999 launch as a controversial file-sharing platform. After legal challenges led to its shutdown in 2001, the brand was revived as a legitimate streaming service in 2016.
While Napster's current user base remains smaller than industry giants like Spotify, Infinite Reality believes the brand's legacy and new social features will help attract music fans seeking deeper connections with their favorite artists.