Reuters blog archive
MySpace is looking to buy Web music service iLike for around $20 million according to several blogs. iLike co-founder Hadi Partovi declined to comment when we asked him and MySpace's PR team also declined to share details.
All Things Digital has the latest details of the deal which they say is around $13.5 million in cash, with a $6 million earn out for the founders which include Hadi's twin brother Ali who is CEO. Official confirmation of an agreement is being held up by "thorny tax issues" according to All Things Digital's sources.
The news makes some sense because as MySpace is fast losing ground to Facebook in the social networking arena. MySpace's owner, News Corp, has indicated that it sees the site becoming more of an entertainment portal.
In fact according to our sources MySpace Music, the joint venture between MySpace and the major music companies, is one of the few parts of MySpace that's doing well -- at least in terms of popularity and usage.
Barry Diller likes social networks. He says they function as telephones used to: they help us communicate with each other. But one thing they don't do is make money. Here's what he told the Goldman Sachs Ninth Annual Internet Conference today in Vegas:
In social networks, the only way you get paid is from advertising and advertising has ... on social networks has proved to be not particularly effective.