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.
iLike, which was once the darling of the the digital music start-up world, has ended up struggling like many others, as the industry tries to find a new profitable model for the distribution of recorded music over the Web. iLike has one huge advantage — it is default music application/platform on Facebook. It also has corporate backing from Ticketmaster.