Napster has agreed to be acquired by electronics retailer Best Buy for $121 million. But since Napster has $67 million in cash, the effective cost to Best Buy is $54 million. Best Buy will pay $2.65 per share, nearly double its closing price Friday. Napster shares jumped 87 percent in early trading to $2.54.

For the money, Best Buy gets a database of 700,000 subscribers to Napster's digital entertainment services, and its Web platform that they intend to use to sell content. Napster's board of directors has agreed to the deal.

Napster used to be the coolest place where one could get the music he wanted. But it was far from being legal so it had to be shut down. Its coming back as a legitimate online music store didn’t quite help, though. More trustworthy music providers such as iTunes which currently holds more than 70 percent of the U.S. digital music market were calling the shots and thus seemed to be a better alternative. Best Buy however promises to make Napster become a viable music source.

"This is a very natural and appropriate time for Napster to lever up our position in the industry with a strategic bear hug from such a powerful partner," Napster Chief Executive Chris Gorog told Reuters in an interview. Napster came back with its music download service in May.

Best Buy expects Napster and its 140 employees to remain at its current Los Angeles headquarters.The deal is expected to be completed in the fourth quarter of 2008.