Infinity Reality acquires Napster for $207M, eyes the music metaverse

Infinite Reality, an AI startup, has acquired Napster, the former music-sharing platform, and intends to integrate a music-centric metaverse into its streaming service. 

Infinite Reality purchased Napster for $207 million and plans to enhance it with a music-themed metaverse. 

On March 25, Infinite Reality revealed that Napster would feature “branded 3D virtual spaces,” allowing users to experience virtual concerts, participate in “social listening parties,“ and purchase virtual merchandise. 

“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,” said Napster CEO Jon Vlassopulos, who will continue in his role amid the acquisition.

“The internet has evolved from desktop to mobile, from mobile to social, and now we are entering the immersive era,” he added

Additionally, Infinite Reality announced that Napster will equip musicians with AI-based tools for managing fans and communities, provide analytics dashboards for tracking engagement, and offer cross-promotion opportunities with its entertainment businesses, including Esports teams. 

Napster, which launched in 1999, pioneered online piracy by enabling music distribution through peer-to-peer (P2P) file sharing. 

After multiple copyright infringement lawsuits, a court decision forced Napster to shut down in 2001. 

After filing for bankruptcy, the company transferred its brand, which later reemerged as a music-streaming service and changed ownership multiple times over the next two decades. 

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In 2022, blockchain firm Algorand and crypto investment firm Hivemind took control of Napster. 

As part of its expansion into the Web3 space, Napster announced in June 2022 its plans to launch a Napster token on Algorand, which users could use to purchase music subscriptions and additional content.

In February 2023, Napster strengthened its Web3 presence by acquiring Mint Songs, a startup in the music space.  

John Acunto, Infinite Reality’s CEO and co-founder, expressed his team’s ambition to lead an “Internet industry shift from a flat 2D clickable web to a 3D conversational one.” 

Infinite Reality expects to complete Napster’s acquisition soon, with the deal set to close in the coming weeks.  

The company aims to transform Napster into a premier immersive music hub, where artists, fans, and curators can connect and generate revenue through advanced engagement features.