When will they learn? (Best Buy to buy Napster)

“Best Buy To Buy Napster” by Joseph Palenchar, TWICE (www.TWICE.com) on Monday 15 Sept 2008.

With all do respect to (the long gone) Shawn Fanning, as well as to the powerhouse Best Buy… Has the Napster brand ever made money? What could Napster possibly have that Best Buy can’t buy elsewhere without all the baggage? One would think $120,000,000 could buy BB quite a bit of – human and technological – resources.

Let’s face it, risk is a function of confidence. Best Buy probably should have considered, Goliath, Wall Street, Kid Rock, etc. before they put $120 million where their cockiness is. It’s true that only 20% of the music market is digital (video even less) so there’s still loads of long term promise in that space. That said, regardless of how deep your pockets are it doesn’t make much sense to put any amount on the horse that has yet to stand in the winner’s circle.

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