Napster acquired by immersive tech company Infinite Reality in $207 million dealNapster, once the world’s most famous peer-to-peer file sharing platform and now a music service, has been acquired by US tech company Infinite Reality.
The tech startup announced the $207 million deal on Tuesday, stating its vision to transform Napster into a “social and interactive music platform” that prioritises “active fan engagement” over passive listening.
Describing its plans for Napster, Infinite Reality says the new platform will allow artists to create “branded 3D virtual spaces” where fans can attend virtual concerts, social listening parties, and “other immersive and community-based experiences”. Musicians will also be able to sell both physical and virtual merchandise, as well as access “enhanced analytics dashboards” to better understand their audience.

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“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,” says Napster CEO Jon Vlassopulos in a press release.
“Imagine stepping into a virtual venue to watch an exclusive show with friends, chat with your favourite 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.”
Vlassopulos will remain as Napster’s CEO while also taking on a “broader role” within Infinite Reality.
John Acunto, CEO and Co-founder of Infinite Reality adds, “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, monetise, and measure their audiences.”
“I firmly believe that the artist-fan relationship is evolving, with fans craving hyper-personalised, 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.”
Launched in 1999 by Shawn Fanning and Sean Parker, Napster revolutionised digital music as the first major peer-to-peer file-sharing platform. However, after facing lawsuits from the record industry and Metallica, it shut down in the early 2000s. In 2011, Rhapsody acquired the brand and relaunched it as a licensed music streaming service.
Since 2016, Napster has operated as a subscription-based platform, offering on-demand streaming for $11 per month. However, it has remained a niche player in a market dominated by Spotify and Apple Music.
The Infinite Reality deal marks Napster’s third acquisition in five years, following previous sales to MelodyVR in 2020 and Web3 companies Hivemind and Algorand in 2022.
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