MySpace is getting closer to a deal to acquire Imeem – at a bottom-of-the-barrel valuation. According to TechCrunch, the acquisition is being priced at roughly $1 million, a fire-sale that only includes certain assets. “MySpace will acquire most of the assets of Imeem for a purchase price of around $1 million in cash,” TechCrunch founder Michael Arrington relayed, citing multiple sources.
That is far lower than anticipated, and offers an unromantic ending for Imeem investors. In fact, the ‘exit’ is nearly the same as winding the company down, at least from the standpoint of the VCs. And, on a broader level, the low-ball price casts a tough light on the on-demand streaming category, a space that has proven difficult to monetize.
The companies are not commenting, though it appears that about one-half of the existing, 55-person Imeem staff would be preserved if the deal is sealed. Other aspects, like major label licensing contracts, are redundant and would be nullified by the buyout.
And what happens to the Imeem brand? That is a question the dealmakers themselves may still be sorting through, though certainly some brand-name equity exists.
