https://blogs.451research.com/techdeals The 451 Take on Tech M&A Fri, 06 Mar 2020 21:03:15 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.26 http://blogs.451research.com/techdeals/investment-banking/bestbuy-music-goes-digital/ Tue, 16 Sep 2008 18:42:57 +0000 http://blogs.451research.com/techdeals/?p=100 Continue reading BestBuy music goes digital →]]> Just a few days after we speculated on a Napster sale, BestBuy said it will pay $121m, or $2.65 a share, for the digital music service. This is an 80% premium from where the company was trading before the offer. After factoring in Napster’s cash and short-term investments, BestBuy paid just $54m, or 0.45 times Napster’s trailing twelve month revenue. A bargain by all means, but it remains to be seen whether BestBuy can do what Napster has failed to do for the past four years: Turn a profit.

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