Napster and Tower Records Creates Japanese Joint Venture; $10 Million Investment

Napster, which is also announcing its Q2 results today, has tied up with Tower Records Japan, the leading music retailer in Japan, to launch Napster Japan in the next 12 months.

Under the terms of the deal, TRJ will contribute up to $7 million in cash and undertake additional funding obligations in exchange for an approximately 70% majority equity stake in Napster Japan. Napster will provide up to $3 million in cash in exchange for a 30% minority equity stake in Napster Japan and guaranteed royalty income.

The announcement earmarks Japan as Napster’s next major market after the U.S., UK, Canada, and soon-to-be-launched Germany.

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