A brand once synonymous with music piracy is now at the center of a $207 million bet on the next era of the internet. On Tuesday, Infinite Reality announced its acquisition of Napster, aiming to transform the legacy music service into a fully immersive, social-first music platform.
The move marks another bold expansion for Infinite Reality, a metaverse-focused startup with recent acquisitions across esports, retail tech, and virtual events. And with Napster, the company is looking to rewire how music is experienced and monetized by both fans and artists.
From Peer-to-Peer Infamy to a New Platform Play
Launched in 1999 by Shawn Fanning and Sean Parker, Napster became the poster child of digital piracy, allowing users to swap MP3 files in a pre-Spotify world. Legal pressure from the music industry shut it down in 2001, and the company filed for bankruptcy the following year. Over the next two decades, Napster was passed between owners, eventually morphing into a fully licensed streaming service with more than 110 million tracks in 34 countries.
Infinite Reality acquired Napster from Hivemind Capital and Algorand, the blockchain company that bought it in 2022. That combination of music rights and Web3 infrastructure was a key selling point. As Infinite Reality CEO John Acunto put it: “Napster will disrupt—but this time, legally.”
The Strategy: Immersive, Social, Shoppable
Infinite Reality doesn’t want to compete with Spotify on playlists or price. Instead, it’s planning to build 3D virtual environments—concert spaces, social listening rooms, branded artist hubs—where fans can engage with music communally and shop in-world for digital or physical merchandise.
“We’re paving a path to a brighter future for artists, fans, and the music industry at large,” said Acunto. “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.”
The idea is to create experiences that combine real-time fan interaction, artist creativity, and commerce—think “Clubhouse times a trillion,” as Acunto told CNBC.
A Familiar Leader at the Helm
Napster CEO Jon Vlassopulos will continue leading the company under Infinite Reality and take on broader organisational responsibilities. Vlassopulos, a former music executive at Roblox, is no stranger to building immersive fan experiences. He also happened to invest in the original Napster while at Bertelsmann.
“The internet has evolved from desktop to mobile, from mobile to social, and now we are entering the immersive era,” Vlassopulos wrote in a blog post. “Yet music streaming has remained largely the same. It’s time to reimagine what’s possible.”
His vision is to give artists the ability to create dynamic, interactive spaces where fan engagement isn’t just possible—it’s monetizable. From selling virtual concert tickets to personalized digital goods, artists will have more tools (and more data) to connect with superfans in real time.
The Take
Napster’s licensing infrastructure and brand recognition give Infinite Reality a fast track into the music streaming world, without needing to negotiate rights from scratch. At the same time, the acquisition shows how legacy digital brands can still hold value in a landscape looking for trusted names with cultural cachet.
For Infinite Reality, which recently raised $3 billion at a $12.25 billion valuation, this is less about nostalgia and more about market opportunity. With backing from names like Liberty Media, MGM, T-Mobile Ventures, and Live Nation—and investors like Steve Aoki and Imagine Dragons—the company is pushing hard to shape what it calls “the immersive era” of the internet.
“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,” said Amish Shah, Infinite Reality’s Chief Business Officer.
Whether that vision can scale—or pull fans away from entrenched habits—is the $207 million question.
