MelodyVR proposes merger with Napster

Virtual reality content creator MelodyVR said on Tuesday that it had agreed to a merger with Napster-owner Rhapsody International.

The deal, which will be classified as a reverse takeover, was expected to take place by the end of November and will see the AIM-listed firm pay a total of $26.3m - with $15.0m coming in the form of a cash payment and the rest being satisfied by way of the issuance of approximately 200.0m shares.

Following the merger's completion, Napster will become a wholly-owned subsidiary of MelodyVR.

Chief executive Anthony Matchett said: "Our purchase of Napster, one of the music industry's original disruptors, is born out of our wish to deliver the world's foremost music experience, available seamlessly across audio and visual media and in turn presenting a truly next-generation music service."

As of 1015 BST, MelodyVR shares were up 2.56% at 4.41p.