Napster sold to Infinite Reality, a tech commerce company, for $207 million

NEW YORK — Infinite Reality has acquired a brand that was once associated with music piracy but later transformed into a subscription music service, purchasing Napster for $207 million.

The acquisition, announced by the tech startup on Tuesday, aims to revamp Napster into a social music platform enabling artists to engage with their fans and enhance the monetization of their music.

“The internet has transitioned from desktop to mobile, then to social media, and now we are stepping into the immersive era. Despite these advancements, music streaming has remained relatively stagnant. It is time to envision new possibilities,” expressed Napster CEO Jon Vlassopulos in a blog post.

Among its plans to update Napster, Infinite Reality said it will create virtual 3D spaces that will allow fans to attend concerts, and give musicians or labels the ability to sell digital and physical merchandise. Artists will also receive a wider range of metrics and analytics to better understand the behavior of platform users.

“We can think of no better use case for our technology than putting it in the hands of music artists who are constantly pushing the boundaries of what’s possible,” said Infinite Reality Chief Business Officer Amish Shah.

Napster was launched in 1999 by Shawn Fanning and Sean Parker and quickly became the first significant peer-to-peer file-sharing application. It shuttered in early 2000s after the record industry and popular rock band Metallica sued over copyright violations. Rhapsody later bought the brand in 2011 and relaunched it as a music streaming service.