TechCrunch has gleaned from its sources that MySpace is close to acquiring social music service iLike for $20 million. iLike is a fairly self-contained social network built around music and bands, much like Last.fm, but it's also the defacto music app for Facebook and Bebo.
Two interesting points about this developing story: 1) According to TechCrunch, it is MySpace making the acquisition, not MySpace Music (the arm of the company that works with record labels); 2) $20 million seems awfully low, given iLike's popularity, especially on Facebook. What gives?
“I think the reason for the distressed sale of iLike despite lots of 'user traction' is that there is no business model here, the company was running out of money, and active users on a FB app don't necessarily amount to a business," said David Pakman of venture-capital firm Venrock (and formerly of eMusic), speaking of a hypothetical sale of the company. “We'll see if Myspace can do anything to try and direct those users into Myspace Music to try and get ad revenue from them or sell t-shirts/tickets, but I am skeptical."
TechCrunch's post doesn't prognosticate on what the post-acquisition iLike will look like, or which social networks will be able to continue using it (if any). The only response we could get from iLike is “We don't discuss rumors and speculation." We'll let you know when hear something more.
Two interesting points about this developing story: 1) According to TechCrunch, it is MySpace making the acquisition, not MySpace Music (the arm of the company that works with record labels); 2) $20 million seems awfully low, given iLike's popularity, especially on Facebook. What gives?
“I think the reason for the distressed sale of iLike despite lots of 'user traction' is that there is no business model here, the company was running out of money, and active users on a FB app don't necessarily amount to a business," said David Pakman of venture-capital firm Venrock (and formerly of eMusic), speaking of a hypothetical sale of the company. “We'll see if Myspace can do anything to try and direct those users into Myspace Music to try and get ad revenue from them or sell t-shirts/tickets, but I am skeptical."
TechCrunch's post doesn't prognosticate on what the post-acquisition iLike will look like, or which social networks will be able to continue using it (if any). The only response we could get from iLike is “We don't discuss rumors and speculation." We'll let you know when hear something more.
