Consumer electronics retailer Best Buy has struck a deal to acquire online music service Napster in a transaction totaling some $121 million. The transaction has Best Buy paying $2.65 per share of Napster—just about double the company’s closing stock price last week; as part of the deal, Best Buy also get about $67 million in short term investments and cash held by Napster, making Best Buy’s net cost about $54 million. The companies expect the deal to close during the fourth quarter of 2008, with current Napster CEO Chris Garog and other key Napster execs entering into "employment agreements" with Best Buy…although we wouldn’t expect to see them turning up in those Geek Squad cars. Best Buy plans to keep Napster and its 140 employees located in Los Angeles.
