If rumors are to be believed then, MySpace, a unit of media giant News Corp. is firming up its plan to acquire imeem, a free online music service, in a bid to expand its MySpace Music service which allows users to create a profile, and can recommend music to others or find out what they're listening to just like imeem.
Imeem, which reportedly has over 4.5 million users, has been sued by The Orchard Enterprise, a large independent label and has been asked to pay $150,000 per infringement, with the total amount of the lawsuit breaching the billion mark. The company was also sued earlier by Warner Brothers but it got out of it by giving up a part of its equity.
The deal with MySpace, if it goes through, will give the company a chance of getting rid of its debts. It has been reported that MySpace has struck a deal which will waiver some of the lawsuit against imeem. MySpace recently bought music recommendation service iLike for $20 million and gave the founding Partovi brothers new executive roles.
Imeem started to sink in debt when back in September 2009, one of its most major backers decided to stop funding the website which relied heavily on revenues from advertisements.