Done Deal: MySpace Buys Imeem for Up to $10 Million
by Peter Kafka
Posted on November 18, 2009 at 7:12 PM PT

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Its official: MySpace has closed on its acquisition of Imeem, the streaming music service. It is paying a fire-sale price of $1 million, sources familiar with the situation tell me, and could pay up to $7 million to $9 million in earn-outs for key employees, who will likely include CEO Dalton Caldwell.

For the record, the deal theoretically values Imeem at something like $8 million, but most of that comes in the form of accounts receivable and debt obligations, and isnt relevant to MySpace, which wont be dealing with that stuff. And its not relevant to investors like Sequoia and Warner Music Group (WMG), which pumped at least $25 million into the venture



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