Napster Is Acquired By Infinite Reality

Napster is getting a second shot at relevance with its acquisition by 3D-tech company Infinite Reality, which wants to turn the brand into a hub for metaverse-style digital concerts.

The Big Play: Napster’s acquisition sits at the intersection of two major trends — the creation of cutting-edge digital concert venues and the re-emergence of platforms that millennials will remember from the internet’s early days. If Infinite Reality is successful in making Napster a household name (for legit reasons), then it could be the wildest company-comeback story in years.

Behind the Streams: Infinite Reality CEO John Acunto told CNBC he wants Napster’s 3D spaces to be like “Clubhouse times a trillion.”

• Infinite Reality bought Napster — which filed for bankruptcy in 2002 and has changed hands many times throughout the past decade — for $207 million.
• It’ll continue as a (now legal) streaming service, but artists will also be able to build virtual 3D spaces to host metaverse concerts and listening parties.
• Additionally, musicians and labels will also be able to sell physical and virtual merch.

The Future: Over its history, Napster has transformed from an illegal file-sharing service to a paywalled streamer in the mold of Spotify. It licenses millions of tracks and has paid out roughly a billion dollars in royalties, so it is a working business… even if no one was really aware of it. Not to mention, it counts Jon Vlassopulos, the former head of music at Roblox, as its CEO… so it has leadership with experience in this space.

As for Infinite Reality, which raised $3 billion earlier this year, the company has made some curious acquisitions over its six-year history, including the spatial-web startup Ethereal Engine, game developer LandVault, and VR retail brand Obsess… so Napster definitely fits into that mold as it tries to combine each asset into a music-industry disruptor.