Digital music OG Napster is now owned by immersive technology company Infinite Reality, which announced a deal to acquire the music streamer for $207 million.
Infinite Reality plans to expand Napster beyond just a basic music streaming service, where it faces far bigger competitors like Spotify, Apple, YouTube and Amazon. In a press release, Infinite Reality said Napster will become “a social music platform that prioritizes active fan engagement over passive listening” and will let artists “connect with, own and monetize the relationship with their fans.”
Infinite Reality’s ideas for Napster include creating branded, 3D virtual spaces for virtual concerts, social listening parties and other community-based experiences; selling merchandise, digital content and event tickets; and using AI-powered customer service, sales and community management agents for personalization.
The company also plans to integrate Napster with its other entertainment assets, which include the Drone Racing League (which Infinite Reality acquired for $250 million in 2024), and esports organizations that host tournaments for titles like “Call of Duty” and “League of Legends.”
As part of the acquisition, Napster CEO Jon Vlassopulos will continue to lead the music company will “take on a broader role” for Infinite Reality. Vlassopulos was hired as Napster’s CEO in 2022 after serving as VP and global head of music at Roblox; he started his career as an executive at BMG and invested in the original Napster when he was at Bertelsmann. “The internet has evolved from desktop to mobile, from mobile to social, and now we are entering the immersive era,” Vlassopulos commented. “Yet music streaming has remained largely the same. It’s time to reimagine what’s possible.”
Infinite Reality bought Napster from Hivemind Capital Partners and blockchain and cryptocurrency company Algorand, which had acquired the music streamer in May 2022. Napster launched in 1999 as a peer-to-peer file sharing service — becoming a poster child for piracy. The original Napster was sued by music labels into bankruptcy over claims of massive copyright infringement. The Napster brand was subsequently relaunched and had multiple owners over the years, including Best Buy, which sold it to Rhapsody in 2011. Today Napster operates a fully licensed independent music service with 110 million tracks, available in 34 countries.
“We are delighted that Napster is now going to be a part of Infinite Reality, validating a new paradigm for music and media,” said Steve Kokinos, co-founder of Algorand and chairman of the board of Napster. “We always believed in Jon’s long held vision and experience from Roblox that the next frontier of digital music and super fan experiences will be more immersive, more social and more shoppable.”
Infinite Reality, founded in 2019, announced in January that it raised $3 billion at a $12.25 billion valuation. The company’s investors include RSE Ventures, Liberty Media, Lux Capital, Lerer Hippeau, MGM, T-Mobile Ventures, Courtside VC, Exor, Terracap, IAC and Live Nation, as well as Steve Aoki, Imagine Dragons, NBA player Rudy Gobert and pro tennis player Taylor Fritz.
“By acquiring Napster, we’re paving a path to a brighter future for artists, fans, and the music industry at large,” said John Acunto, co-founder and CEO of Infinite Reality. “This strategic move aligns with Infinite Reality’s vision to lead an internet industry shift from a flat 2D clickable web to a 3D conversational one — giving all creators modern tools to better engage, monetize, and measure their audiences.”
