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# Reports: MySpace Buys imeem At Fire Sale Price
- URL: https://www.hypebot.com/reports-myspace-buys-imeem-at-fire-sale-price/
- Published: 2009-11-19T07:37:30.000Z
- Updated: 2009-11-19T07:37:30.000Z
- Description: MySpace has completed the purchase of imeem, which has been rumored since Monday, at a price that could make venture capitalists wary of investing in any startup that requires music. Continue reading [https://www.hypebot.com/hypebot/2009/11/reports-myspace-buys-imeem-at-fire-sale-price.html]
- Author: Bruce Houghton
- Tags: Social Media, #wp, #wp-post, #Import 2026-01-21 11:03

[![image from hhrapinfo.com](http://hypebot.typepad.com/.a/6a00d83451b36c69e2012875ac8528970c-200wi "image from hhrapinfo.com")](http://hypebot.typepad.com/.a/6a00d83451b36c69e2012875ac8528970c-pi?ref=hypebot.com) MySpace has completed the purchase of imeem, which has been rumored since Monday, at a price that could make venture capitalists wary of investing in any startup that requires music licensing. 

[](http://www.techcrunch.com/2009/11/18/myspace-signs-agreement-to-acquire-imeem/?ref=hypebot.com)[![image from www.binaband.com](http://hypebot.typepad.com/.a/6a00d83451b36c69e20120a6b5a0bc970b-150wi)](http://hypebot.typepad.com/.a/6a00d83451b36c69e20120a6b5a0bc970b-pi?ref=hypebot.com)   
 TechCrunch puts the purchase price at just $1 million. Imeem's debt is also being assumed and some assets are not included in the deal, say TechCrunch's sources, including millions of dollars in accounts receivable. But [VentureBeat](http://venturebeat.com/2009/11/18/imeem-another-music-streaming-story-ends-in-tears/?ref=hypebot.com)'s sources says the purchase price is $7 to 9 million – $1 million in cash plus earn outs to retain key employees. About half of the current staff of 55 will be cut after the sale, according to reports.

Whether the final number is $1M or $9M, it is far lower than the $20+ million that imeem raised and burned through during its 6 year life. My sources blame the failure almost entirely on what many see as excessive liscening fees from the labels, as well as, lower ad revenue caused by the battered economy. Imeem was, after all, attracting almost 6 million visitors monthly. But that number had been falling; [more than 12%](http://siteanalytics.compete.com/imeem.com/?metric=uv&months=3&ref=hypebot.com) in recent months.