Melody VR buys Napster for $70m

Melody VR (LON: MVR) has announced plans to buy Napster in a $70m (£53.8m) deal.

Melody VR is a tech startup, which uses virtual reality as a way to allow fans to experience music gigs from a range of artists.

The two businesses will initially continue as two separate platforms, however, Melody VR plans to use Napster’s 90mn songs as a shop for users who are streaming gigs.

Shares in Melody VR soared over lockdown, as the group benefitted from the demand in at-home entertainment. Users were able to stream concerts from artists ranging from Lewis Capaldi to Wiz Khalifa.

Shares are currently suspended but are sat at 4.4 pence.

“MelodyVR’s acquisition of Napster will result in the development of the first ever music entertainment platform which combines immersive visual content and music streaming,” said Melody VR’s chief executive, Anthony Matchett.

“For music fans today, live and recorded music are intrinsically linked. We are as keen to see our favourite artists perform live as we are to listen to their albums. Our purchase of Napster, one of the music industry’s original disruptors, is born out of our wish to deliver the world’s foremost music experience, available seamlessly across audio and visual media and in turn presenting a truly next generation music service.”

Bill Patrizio, Napster chief executive, said: “This is a tremendous outcome for two organisations with complementary platforms and loyal audiences, and we could not be more excited to be moving forward as one company.”

“The product, technology and cultural synergies of Napster and Melody VR will bring tremendous innovation for music lovers, artists and the entire music industry,” he added.

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Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.