MySpace Buys Imeem before Burying It Alive

MySpace buys Imeem

If you have an account on Imeem and did not have the slightest idea about the recent developments that plagued the cash-strapped social networking site, you would be shocked to see that Imeem is now being redirected to MySpace Music.

Hours ago, MySpace has announced that they have bought the online music service Imeem for an unspecified amount.  Estimates, based on different reports, vary from less than US$1 million to as much as $10 million.  This is the second acquisition of News Corp’s social network to beef up its entertainment content, a move that would differentiate itself from fierce rival Facebook.

Before Imeem’s demise, this San Francisco-based start-up lets its members stream music, create playlists, and share them with friends either through email, blogs, or social networking profiles.  It made a bulk of its revenue through advertising as well as selling ringtones, music downloads, mobile phone applications, and even concert tickets.  However, its income could not keep up with the ballooning debt and music royalty payments.

Meanwhile, MySpace is not doing so well either.  Because more users become disenchanted with MySpace in favor of Facebook, the former rebrands itself as a social network between musicians promoting their stuff and music lovers connecting with their idols, an activity that has been happening in the site for several years now.  As a result, MySpace has cut its work force, installed a new management team, and developed new products that would let users share entertainment content.

The few remaining Imeem executives will act as consultants to MySpace during the transition phase.  Whether they will be hired by MySpace, however, is yet to be determined.

Image source:  MySpace

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