MySpace buys imeem music site for under $1 mln

Dec 08, 2009 By RYAN NAKASHIMA , AP Business Writer
The homepage of MySpace displayed on a computer monitor. MySpace on Tuesday announced that it has bought online music service imeem and is weaving it into the social networking community.

(AP) -- MySpace's online music venture with recording labels completed its purchase of song streaming site imeem on Tuesday, scooping up its 16 million users and mobile phone applications for less than $1 million.

In a blog post, Chief Executive Owen Van Natta said the deal would allow the MySpace Music venture to integrate imeem's offerings over time.

One of imeem's functions that MySpace lacks is a mobile phone application that streams songs on Apple Inc.'s iPhones and devices using Inc.'s Android operating system, such as the new Droid phone.

"In the coming weeks, our team will be working to take the aspects of imeem that users love and migrate them to MySpace Music," he wrote.

The music industry continues to experience falling sales of CDs, while digital revenues have not yet made up the difference, in part because consumers tend to buy singles rather than full albums when they do pay for music.

Efforts such as MySpace Music and imeem are meant to allow people to listen and share music freely online, with revenue generated from advertising.

San Francisco-based imeem launched its free music business in 2007, but advertising revenues were lacking and the company was running out of money.

The price tag of less than $1 million represents a bargain for MySpace and is an indication of how difficult the free music business remains.

In May, Corp. wrote off its entire $16 million investment in imeem and also forgave $4 million it was owed by imeem in song royalties in exchange for a small, minority equity stake. Warner, PLC, Vivendi SA's Universal Music and Sony Corp.'s are all part of the joint venture with MySpace, a unit of News Corp.

Imeem visitors are now being directed to MySpace Music, and imeem users who have set up profiles and song playlists will have them migrated over to the MySpace Music platform soon.

Imeem Chief Executive Dalton Caldwell, Chief Technology Officer Brian Berg, Chief Operating Officer Ali Aydar and Vice President of Sales David Wade are staying on as consultants during the transition. It is not clear whether they will become permanent employees.

Imeem was majority owned by private equity firm Morgenthaler Ventures.

MySpace is revamping its service under Van Natta, who took over in April as CEO from co-founder Chris DeWolfe.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Explore further: Streaming release of 'Interview' test for industry

add to favorites email to friend print save as pdf

Related Stories

MySpace in talks to buy imeem

Nov 17, 2009

(AP) -- Online social hub MySpace is in talks to acquire struggling free music streaming site imeem, two people familiar with the matter said Tuesday.

MySpace Music videos to appear on Facebook

Oct 21, 2009

(AP) -- Social-networking site MySpace is using its joint venture with recording companies to launch a music video service that will pop into millions of profiles at rival Facebook as well.

Google puts songs a click away in search

Oct 28, 2009

(AP) -- A new music feature rolled out by Google Inc. Wednesday will bring its U.S. searchers one click away from listening to a full-length song.

MySpace scoops up popular Facebook app iLike

Aug 19, 2009

(AP) -- Social networking hub MySpace said Wednesday it is acquiring iLike, a popular music application on rival Facebook, in the first move by new management to expand after a series of drastic cuts and ...

Sony becomes 2nd label on Vevo music video site

Jun 04, 2009

(AP) -- Recording company Sony Music Entertainment has joined Vevo, an online music video site due to launch this year with the backing of Universal Music Group and YouTube.

Recommended for you

Streaming release of 'Interview' test for industry

Dec 25, 2014

Sony's "The Interview" has been a hacking target, a punchline and a political lightning rod. Now, with its release online at the same time it debuts in theaters, it has a new role: a test for a new kind of ...

Web outage hardly stirs Internet-free N. Korea: experts

Dec 24, 2014

North Korea's Internet went down this week after an apparent attack but most of its citizens will not have noticed the difference in a country that does its level best to seal off foreign influence, experts say.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.