Best Buy accepts 83.3% of Napster's outstanding stock, begins subsequent offering

By Lisa Kerner

Charlotte, N.C., Oct. 27 - Best Buy Co., Inc. accepted a total of 39,301,255 shares, or 83.3%, of Napster, Inc. in the tender offer ended Oct. 24.

The offer, made through Best Buy subsidiary Puma Cat Acquisition Corp., began on Sept. 26.

According to Best Buy, it will make prompt payment of approximately $104 million for those shares.

Best Buy began a subsequent offering period for the remaining Napster shares at the same $2.56-cash-per-share price as in the original offer.

The subsequent offering period ends at midnight ET on Oct. 29, a Best Buy news release said.

"We look forward to concluding the merger so that we can begin the work of increasing Napster's subscribers and building on its capabilities in the digital media space," David Morrish, Best Buy's executive vice president of connected digital solutions, said in the release.

Napster is a Los Angeles interactive music services provider.

Best Buy, a Richfield, Minn., specialty retailer of consumer electronics and entertainment software, plans to fund the acquisition using available cash.

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