BEVERLY HILLS (Hypebot) –
MySpace is in late stage negotiations acquire imeem, according to several sources, much like social networker bought iLike just months ago. MySpace and imeem are each struggling in their own way: MySpace with declining visitors and imeem with an unsustainable business model. But will the whole be greater than the sum of the parts?
Before we find out, imeem's board will almost certainly be forced to accept a fire sale price for the free music streaming service. Young Dalton Caldwell has kept imeem going and growing to 16 million monthly visitors for six years despite what many believe are unrealistically high royalty demands from the record labels. Now investors are said to be tired of propping up imeem, and the deep pockets of MySpace and parent News Corp are riding to the rescue.
Why would MySpace buy imeem? As with the iLike purchase part of the acquisition is about acquiring executive talent (Wouldn't you love to be a fly on the wall at the first meeting on how to fix MySpace with the combined execs from all three companies?) and technology (imeem owns SnoCap's tech, as well). But the purchase of imeem may also be about clearing the playing field of one of the last viable free music service operating in the U.S. MySpace is rumored to be considering a switch to some kind of pay service and with Spotify's launch here stalled, controlling the competition may be the real end game.
Could lala be the next company acquired by MySpace? Or should Google by lala to control more of its own music content?