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.