Napster Sold for $200+ Million in the Year 2025
fliptop writes:
The popular and original mainstream illegal music file-sharing platform that caused absolute mayhem for record labels in the early 2000s was sold to tech company Infinite Reality on Tuesday for a whopping $200+ million figure, as the startup said that it hopes of transform [sic] the streaming service into a music Metaverse of sorts:
What's wild about the whole thing is that Napster's website was shut down 24 years ago after being sued into oblivion by record labels and bands like Metallica due to copyright infringement, yet still went for such a substantial sum all these years later.
Make no mistake about it. The reason why Napster was just sold for such a high price was because of the brand's recognition. For a startup company like Infinite Reality to immediately have a known name like Napster seems like a gamble worth taking. They probably would have spent a good chunk of that anyway in marketing alone just to end up in the same spot where they are now with no further upside like Napster could bring - especially if they bring it back in a witty way and play on the fact that people are shocked the company even still exists.
From USA Today:
"By acquiring Napster, we're paving a path to a brighter future for artists, fans, and the music industry at large," John Acunto, co-founder and CEO of Infinite Reality, said on Tuesday. "This strategic move aligns with Infinite Reality's vision to lead an internet industry shift from a flat 2D clickable web to a 3D conversational one - giving all creators modern tools to better engage, monetize, and measure their audiences... We're creating the ultimate music platform where artists can thrive in the next wave of digital disruption."
[...] Throughout the late 1990s and early 2000s, Napster faced several lawsuits from musical artists and record labels, including rock band Metallica, rapper and producer Dr. Dre, A&M Records and the Recording Industry Association of America (RIAA). The lawsuits were filed over leaked songs and copyright infringement claims.
In the RIAA's 1999 copyright lawsuit against Napster, the music recording company described the service as "a safe haven for piracy," as detailed in "All the Rave: The Rise and Fall of Shawn Fanning's Napster" by Joseph Menn. The RIAA's suit sought $100,000 for each copyright-protected song shared over the network, or around $100 million, The Wall Street Journal reported at the time.
Also at Engagdet.
Related: The Legacy of Peer-to-Peer Systems
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