Napster sells for $207M to build music metaverse

AI startup Infinite Reality has acquired Napster for $207 million, aiming to transform the music-streaming service into a music-focused metaverse with virtual concerts and social features.

The March 25 deal marks Napster’s latest reinvention, from its origins as a peer-to-peer piracy platform in the 2000s to its current Web3 ambitions.

Infinite Reality plans to integrate 3D virtual spaces for live events, artist meetups, and digital merchandise sales.

“Imagine stepping into a virtual venue to watch an exclusive show with friends, chat with your favorite artist in their own virtual hangout as they drop their new single, and be able to directly buy their exclusive digital and physical merch,” Napster CEO Jon Vlassopulos described, outlining the vision.

The acquisition follows Napster’s Web3 experiments, including a 2022 token launch on Algorand (CRYPTO:ALGO) and its 2023 purchase of blockchain music startup Mint Songs.

Infinite Reality also plans to equip artists with AI tools for fan analytics and community management, aligning with its broader goal to shift the internet “from a flat 2D clickable web to a 3D conversational one,” per CEO John Acunto.

Napster’s journey reflects the music industry’s evolving digital landscape.

Founded in 1999, it became synonymous with copyright infringement before pivoting to streaming.

Its sale to Infinite Reality underscores the growing overlap between AI, blockchain, and immersive tech in entertainment.

While the metaverse concept remains nascent, Infinite Reality’s acquisition positions Napster as a testbed for artist-fan engagement in virtual spaces.

The deal is set to close in weeks, pending regulatory approvals.

Whether Napster’s legacy as a piracy pioneer will influence its metaverse adoption remains to be seen, but the move highlights the brand’s resilience in adapting to technological shifts.

For now, the acquisition signals a bet on immersive entertainment as the next frontier for music platforms.

Infinite Reality’s AI-driven tools could streamline artist monetisation, though challenges like user adoption and regulatory clarity loom.

Napster’s transformation into a metaverse hub will likely hinge on balancing innovation with practicality in a crowded digital music market.