Napster Reboots: Sells for $207M With Big Plans for the Music Metaverse

The acquisition, finalized in late March, marks a dramatic pivot for a brand long associated with the disruptive early days of digital music. Infinite Reality plans to transform Napster into an immersive music destination—complete with virtual concerts, artist hangouts, digital merch, and community events—positioning it as a major player in the emerging metaverse economy.

Founded in 1999 by college students Shawn Fanning and Sean Parker, Napster skyrocketed to popularity for allowing users to freely swap MP3 files. Its user base grew into the tens of millions almost overnight—but so did legal trouble. Sued by the Recording Industry Association of America (RIAA) and major record labels, Napster was shut down in 2001 after a high-profile court battle.

But the brand survived. Over the years, Napster changed hands several times, morphing into a legitimate subscription-based streaming service. The most recent iteration operated quietly in the shadow of streaming giants like Spotify and Apple Music—until now.

Napster's new owner, Infinite Reality (iR), specializes in 3D digital environments, metaverse infrastructure, and immersive experiences. The company is betting that music fans will want more than just playlists—they’ll want presence, community, and connection.

“Fans crave hyper-personalized, intimate access to their favorite artists,” said Infinite Reality CEO John Acunto in a press release. “At the same time, artists are searching for innovative ways to deepen those connections and access new revenue streams. The metaverse offers both.”

With this acquisition, Napster will become a flagship platform within Infinite Reality’s broader metaverse ecosystem. The company envisions a fully interactive music space where users can virtually attend exclusive shows, hang out with their favorite artists, and shop for both physical and digital merchandise.

Jon Vlassopulos, who joined Napster as CEO in 2022 and previously served as global head of music at Roblox, will continue to lead the platform. His background in virtual music experiences is expected to play a key role in Napster’s evolution.

“Imagine stepping into a virtual venue to watch an exclusive show with friends, chat with your favorite artist in their own virtual hangout, or collect limited-edition digital merch tied to real-world events,” Vlassopulos said in a recent interview. “That’s where we’re headed.”

While no official launch date has been set, Infinite Reality says Napster’s metaverse features will begin rolling out in phases later this year. Still, industry insiders see the move as part of a broader trend. Artists and labels have increasingly explored virtual events, NFTs, and immersive fan engagement tools in recent years.

“Napster has brand equity and nostalgia working in its favor,” said Music Business Worldwide editor Tim Ingham. “If they can build a product that appeals to both younger fans and artists looking to monetize in new ways, there’s a path forward.”

As the music industry continues to embrace Web3, NFTs, and the metaverse, Napster’s reinvention could serve as a case study in digital transformation. While challenges remain—including user adoption, tech infrastructure, and content licensing—the backing of Infinite Reality gives the iconic brand a strong launchpad.

More than two decades after it first upended the music world, Napster may once again be poised to change the way we experience sound—this time, in 3D.