March 25, 2025
Napster, a digital music service with a long history, has been acquired by Infinite Reality (iR), a tech startup specializing in extended reality (XR), artificial intelligence (AI), and other immersive technologies, in a $207 million deal.
As part of the acquisition, Jon Vlassopulos, the former Global Head of Music at Roblox and current Napster CEO, will continue in his role and assume a broader global position within Infinite Reality. The acquisition comes shortly after Infinite Reality secured a $3 billion funding round from a private investor, valuing the company at $12.25 billion.
Infinite Reality’s investors include RSE Ventures, Liberty Media, Lux Capital, Lerer Hippeau, MGM, T-Mobile Ventures, Courtside VC, Exor, Terracap, IAC, Live Nation, and notable individuals like Steve Aoki, Imagine Dragons, NBA player Rudy Gobert, and tennis player Taylor Fritz. With Napster, Infinite Reality intends to create “branded 3D virtual spaces” where fans can enjoy virtual concerts, social listening parties, and create community-based experiences. They also plan to facilitate the sale of physical and virtual merchandise, exclusive digital content, and event tickets.
In a press release on Tuesday, Infinite Reality emphasized that the “newly-reimagined Napster” aims to differentiate itself from rivals by shifting its focus from passive listening to active fan engagement, defining itself as a social music platform.
“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. We’re creating the ultimate music platform where artists can thrive in the next wave of digital disruption.”
Acunto added, “I firmly believe that the artist-fan relationship is evolving, with fans craving hyper-personalized, intimate access to their favorite artists, while artists are searching for innovative ways to deepen connections with fans, and access new streams of revenue. We’re creating the ultimate music platform where artists can thrive in the next wave of digital disruption.”
Napster initially disrupted the music industry in June 1999, when Shawn Fanning and Sean Parker launched the online file-sharing site. It later evolved into a fully licensed streaming music service. By June 2002, Napster declared Chapter 11 bankruptcy in the US, with Roxio acquiring its assets and brand that September. In September 2008, Best Buy acquired Napster for $121 million. Napster merged with Rhapsody in December 2011, becoming the international brand for the music streaming service. In August 2020, Napster was sold to MelodyVR for $70.6 million, with the deal closing in April 2021. In May 2022, Hivemind and Algorand acquired the platform, planning to expand Napster into the Web3 space.
Three years later, Infinite Reality announced its plans to transform Napster beyond streaming into an interactive and social music platform, utilizing its immersive technology and its network of digitally native fans.
Napster reports having paid over $1 billion to artists and songwriters globally over the past two decades.
“Napster revolutionized digital music in the nineties, and now, with Infinite Reality, we’re ready to do it again,” said Jon Vlassopulos, Napster CEO. “The internet has evolved from desktop to mobile, from mobile to social, and now we are entering the immersive era. Yet, music streaming has remained largely the same. It’s time to reimagine what’s possible.”
Vlassopulos added, “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. With Infinite Reality’s expertise in immersive 3D technology, we will transform Napster into a next-generation platform where fans don’t just listen on their own—they experience music in entirely new ways. This isn’t just a new chapter for Napster, it’s the beginning of a more interactive and social music experience for the next era of the internet.”
Steve Kokinos, co-founder of Algorand and Chairman of the Board of Napster, commented, “We are delighted that Napster is now going to be a part of Infinite Reality, validating a new paradigm for music and media. 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. Excited to see what they create together!”
Amish Shah, Chief Business Officer of Infinite Reality, stated, “As we think about leading a sectoral shift from 2D web to 3D web, no other community is more critical than creators who are always at the forefront of leveraging innovation to express themselves and disrupt legacy systems. The endurance of the Napster brand stands as a testament to its resilience, and we are honored to build upon its pioneering spirit and unparalleled expertise in the music industry. 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.”