The Daily Swarm

TechCrunch:

We don’t know the price of the acquisition, but this isn’t going to be a big win for investors. iMeem has raised at least $25 million (that we’ve been able to track) plus at least another $10 million in debt. But the difficultly in making a free streaming music service work as a business model forced them to make some hard decisions. Earlier this year they renegotiated label contracts and recapitalized the company, bringing in $6 million in fresh capital.

iMeem found a way to survive a few more months. But now they’re under the financial gun again, we’ve heard, and investors aren’t willing to put more capital into the company. But MySpace is stepping in to acquire the company.

What’s in it for MySpace – the acquisition of a seasoned team with lots of experience in music. Plus the iMeem and SNOCAP intellectual property. It’s not clear if the iMeem brand will live on, but iMeem users will certainly be welcome at MySpace, I’m sure.

This is another blow for free streaming music lovers. iMeem and MySpace Music were among the last free streaming services in the U.S. And MySpace Music, we’ve heard, will soon be forced to turn to subscriptions to manage costs.

Media Memo:

Going, going, gone: The last of the Web 2.0 music are dwindling away. The latest is Imeem, which in the process of being purchased by MySpace, I’ve confirmed.

Haven’t heard a purchase price yet, but I wouldn’t expect much, given that this deal, like the iLike purchase MySpace made earlier this year, is an “acqhire” — News Corp.’s (NWS) social network/portal wants to buy Imeem for its “sales team, engineering, Snocap and other Imeem IP”, an person familiar with the transcation tells me.

The deal, which isn’t finalized, was first reported by TechCrunch. More shortly.

Digital Music News:

Imeem may finally get the out it wants. According to tips from TechCrunch, MySpace is now circling around the beleaguered Imeem, and working through ‘late-stage negotiations’ to purchase the company.

But just like the recent purchase of iLike, valuations are likely to be subdued – and disappointing for the stakeholders involved. “We don’t know the price of the acquisition, but this isn’t going to be a big win for investors,” TechCrunch founder Michael Arrington relayed.