It was announced today, confirming rumors, that MySpace will be acquiring iLike for an undisclosed amount. MySpace’s press release makes everyone out to be giddy about the acquisition which is what one might expect. According to cnet though there was some underlying suspicion that iLike was purchased on the cheap.
No terms of the deal were disclosed, but reports have indicated that iLike was sold at quite a bargain–something in the neighborhood of $20 million total–because its ad-supported, streaming music model failed to rake in the profits that investors hoped it would.
OK, so struggling social networking entity, MySpace, buys supposedly struggling social music discovery service. A marriage made in mediocrity? cnet goes on to say that MySpace itself is having trouble in the space where it is supposedly concentrating.
Meanwhile, Owen Van Natta (MySpace CEO) claimed that MySpace Music is “doing extremely well” and that “we absolutely expect MySpace Music to be an important part of MySpace…for years to come.” Several months ago, rumors were swirling around the music industry that its performance hadn’t been up to expectations.
In addition there are questions as to how this union will affect iLike’s relationship with Facebook which is where most of their business was coming from.
The social network’s developer platform has been home to much of iLike’s activity, and now that it will be owned by Facebook’s closest rival, there’s a chance that Facebook could restrict or block the app. Van Natta, Facebook’s former chief operating officer, said that iLike’s apps are part of “a lot of different social networks’ experience. We’re excited about just continuing to expand that experience to other areas of entertainment that MySpace has assets in.”
If you are not dizzy from the spin it’s understandable. As MySpace struggles to define itself after its fall from social media grace, it is concentrating on music as well as gaming and possibly film. The iLike technology is being touted as a way to make this happen.
So here we are again with news from MySpace. Does it matter to you anymore? Is it even news any more? Tell us if are still a MySpace user or use it in our business plan. Inquiring minds want to know.