Sunday, November 22, 2009

MySpace snap up Imeem, unworried by strange smell

Increasingly, Rupert Murdoch's purchase of MySpace looks like a kneejerk move that confused the panic with the strategic.

Clearly, he's managed to bring this management style to MySpace, whose purchase of MySpace looks exactly the same.

As takeovers go, it has all the thought and care of that box of Milk Trayy Way grabbed from a Wild Bean Cafe shelf moments before midnight on Valentine's Day.

Admittedly, MySpace are getting something dirt cheap - the most generous estimates are putting the price tag at nine million; shrewder heads suggest it might have been scooped up for a million dollars. The company has spent more than twenty million to get to this point.

On the other hand, MySpace is already seeing its bottom line assailed by the costs of offering streaming music - does it really need to pick up more of those costs? Especially since Imeem was undermined by high royalty demands from labels - exactly the same problem MySpace is struggling with.