In a bid to position itself better in the highly competing social networking domain, MySpace has announced to snap up a social music start up firm, “iLike”, as a part of its schema to reinvigorate its platform to lure more social networking enthusiasts.
The acquisition would presumably spruce up the offerings of the social networking site, which has been losing considerably to rivals, especially Facebook, of late.
Financial terms of the acquisition were not revealed, but a source close to the situation notified that the deal would be valued at around $20 million.
Introduced back in 2006, iLike quickly turned out to be a widget of choice on various social networking sites, including Facebook, where it has been billed as the most popular music application with as many as 10 million active users per month.
Founded by brothers Ali and Hadi Partovi, iLike assists users, musicians, as well as music find one another. It further gives the much needed exposure to a talented budding artist, who is finding it difficult to reach out to the audience.
Announcing the acquisition of iLike, the chief exec of MySpace, Owen Van Natta, said in a statement, “iLike is an important part of a lot of different social networking experiences, and we’re excited to extend that experience to other areas of entertainment that MySpace has assets in”.
Myspace is looking for a unique selling point to stem the migration of its users to Facebook. Now iLike looks like a great partner since Myspace has always been about music. Shame though that others like Spotify, Last.fm and Pandora - and Microsoft - are already on the market.
(The Wall Street Journal)
(The Christian Science Monitor)
(The New York Times)