The Federal Trade Commission has given Best Buy the okay to proceed with its $121 million acquisition of digital music service Napster Inc.

The FTC announced the deal’s approval on Wednesday in a listing on its Web site.

The Minneapolis-based consumer electronics retailer announced last month that it would it would make a tender offer for all outstanding shares of Los Angeles-based Napster for $2.65 per share, representing a 95 percent premium to the stock’s closing price the day before it was announced.

Napster and Best Buy, a leading CD seller with a small digital presence, are betting that the deal will give them a better chance against Apple’s dominant iTunes, which has more than 70 percent of the market.

The acquisition is expected to close in the fourth quarter. Best Buy has said it did not expect to relocate the company, and senior management have signed employment agreements to remain with the company. Napster, which has 700,000 subscribers, employs about 140 people.