Napster sold for $207million over 20 years after shutting down

Napster, the brand notoriously connected to music piracy before reemerging as a subscription music service, has been sold to Infinite Reality for $207 million (€192m).

The tech startup announced it had bought Napster in hopes of transforming the streaming service into a social music platform where artists can connect with fans and better monetize off their work.

“The internet has evolved from desktop to mobile, from mobile to social, and now we are entering the immersive era,” said Napster CEO Jon Vlassopulos. “Yet, music streaming has remained largely the same. It’s time to reimagine what’s possible.”

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 kicked off a wave of pirating software and applications, later followed by the likes of LimeWire.

Napster filed for bankruptcy in 2002 and was shut down after the record industry and rock band Metallica sued over copyright violations. Rhapsody later bought the brand in 2011 and relaunched it as a music streaming service.