The rumors that MySpace is acquiring music streaming service iMeem for a bargain-basement price have gotten some more weight behind them and a deal looks pretty much certain at this point. The deal doesn’t paint a pretty picture for the music streaming business and it remains to be seen if MySpace has better luck with the teams of talented people it has been amassing lately. In any case, it now looks like MySpace will pay just $1 million in cash, though on the whole, the deal is worth at about $8 million plus considerable earnouts for the employees that stay with MySpace.
There still isn’t anything official from any of the companies, but multiple sources confirm that the two sides have reached an agreement and that the negotiations are over for now. It isn’t exactly a done deal yet, but it’s very close to it. MySpace won’t completely assimilate iMeem – the company – but the social network turned media hub will get its hands on most of iMeem’s assets.
Some assets along with the good chunk of the money involved in the deal will be used to pay off some of iMeem’s debt which amounts to as much as $10 million. MySpace will also lose the licensing deals iMeem has signed with music labels as they become void as soon as the company changes hands. What the social network will be getting, though, is the service i… (read more)