Closeup of smartphone screen with logo lettering online music streaming service napster on computer keyboard. Source: Ralf - stock.adobe.com

Key Takeaways:

Infinite Reality acquires Napster for $207M to develop a metaverse-driven music platform featuring virtual concerts, social listening, and digital merch.
Napster will integrate AI tools for fan analytics and artist engagement, tying into Infinite Reality’s broader entertainment and esports ecosystem.
Originally a controversial file-sharing service, Napster continues its digital evolution with Web3 initiatives and immersive tech under its new ownership.

Infinite Reality, an AI and metaverse-focused startup, has acquired Napster for $207 million, aiming to transform the once-iconic music-sharing service into an immersive music platform.

Announced on March 25, the deal will retain current CEO Jon Vlassopulos, who envisions virtual experiences like 3D concert venues, social listening parties, and direct artist-fan interactions in digital spaces.

"The most legendary collab?! Infinite Reality has acquired iconic online music brand @Napster.

With this acquisition, we're expanding and reimagining Napster, empowering artists with new audience monetization and engagement capabilities, underpinned by iR’s #immersive… pic.twitter.com/L4Fig7QFct
— Infinite Reality (@Infinite_iR) March 25, 2025

The revamped Napster will also offer integrated AI tools, including analytics dashboards and community management features, to help artists better understand and engage with their audiences.

Originally launched in 1999 as a peer-to-peer file-sharing platform, Napster was shut down in 2001 after legal battles but has since resurfaced multiple times, evolving into a legitimate streaming service.

In 2022, it was acquired by Algorand and Hivemind, who introduced Web3 features and planned a blockchain-based token system.

Napster furthered its digital transformation by acquiring Web3 music startup Mint Songs in 2023.

Infinite Reality plans to use Napster as a foundation for building a next-generation music experience, blending entertainment, esports, and virtual interaction.

The company’s goal is to help lead the shift from a 2D web to a dynamic, 3D, immersive internet, with Napster positioned as a key player in this emerging metaverse music landscape.