MySpace completes acquisition of imeem music site for less than $1 million; gains mobile apps

MySpace buys imeem music site for under $1 mln

LOS ANGELES — MySpace’s online music venture with recording labels completed its purchase of song streaming site imeem on Tuesday, scooping up its 16 million users and mobile phone applications for less than $1 million.

In a blog post, MySpace Chief Executive Owen Van Natta says the deal would allow the MySpace Music venture to integrate imeem’s offerings over time.

One of imeem’s functions that MySpace lacks is a mobile phone application that streams songs on Apple Inc.’s iPhones and devices using Google Inc.’s Android operating system, such as the new Droid phone.

San Francisco-based imeem launched its free music business in 2007, but advertising revenues were lacking.

The price tag of less than $1 million is an indication of how difficult the free music business remains.