MySpace has lost a lot of ground to Facebook over the last few years and, now with its purchase of imeem, hopes to transform itself into an entertainment destination. The music networking site was acquired for between $8-10 million and Wired reports the majority of this is for imeem's key staff to help with MySpace's aforementioned transition.
The acquisition represents a significant loss considering Warner Music Group "injected an estimated $30 to $35 million into imeem." News Corp are hoping to utilize the talents of iLike co-founders the Partovi brothers and imeem founder Dalton Caldwell to help the site "become more popular as a place to watch videos and listen to music, which has always been its core strength." imeem currently streams music from all four of the major labels although a "source tells CNET that one of the labels exited imeem a few weeks ago."
So, Rupert Murdoch, major labels, and social networking in an all-in-one entertainment venture. I think I'll pass on this Unholy Trinity, thanks!
