Napster, the digital music service claiming to be the longest-running, has been acquired by tech startup Infinite Reality (iR) in a deal valued at $207 million. iR, which focuses on extended reality (XR), artificial intelligence (AI), and other immersive technologies, announced the acquisition on March 25, 2025.
As part of the deal, Jon Vlassopulos, the former Global Head of Music at Roblox and current CEO of Napster, will continue in his role, with expanded responsibilities within Infinite Reality globally.
The acquisition follows a recent $3 billion funding round for Infinite Reality, which valued the company at $12.25 billion. Backed by investors including RSE Ventures, Liberty Media, Lux Capital, Lerer Hippeau, MGM, T-Mobile Ventures, and several notable individuals such as Steve Aoki and Imagine Dragons, Infinite Reality plans to leverage Napster to create “branded 3D virtual spaces.” These spaces will host virtual concerts, social listening parties, and community-based experiences, as well as enable the sale of both physical and virtual merchandise, exclusive digital content, and event tickets.
In a press release, Infinite Reality stated that the “newly-reimagined Napster” aims to differentiate itself by prioritizing “active fan engagement over passive listening.”
“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’s history includes a landmark launch in June 1999 by co-founders Shawn Fanning and Shaun Parker. Initially a controversial online file-sharing site, it later evolved into a licensed streaming music service. The company has faced bankruptcy and multiple acquisitions over the years. Best Buy acquired Napster in 2008 for $121 million, and in 2011, it merged with Rhapsody. In 2020, MelodyVR acquired Napster for $70.6 million, and in 2022 it was acquired by Hivemind and Alogrand, with a focus on expanding in the Web3 space.
Three years later, Infinite Reality stated it intends to transform Napster “beyond streaming into a social and interactive music platform, leveraging its immersive technology and audience 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,” stated Jon Vlassopulos, CEO of Napster. “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.”
He 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, said, “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, added, “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.”
