MySpace In Talks to Purchase iLike Music Service???

MySpace may have finally figured out its niche for combating the Facebook onslaught: music, which the almost-obsolete site nails, way better than its shinier competitor. TechCrunch writes that MySpace is close to an agreement in the purchase of the music-based social networking service iLike. iLike would not only bring a new pool of members to the NewsCorp-owned site, but would also likely expand its music-centric social features. Plus, it has the potential to put Facebook and other competitors in the awkward position of having a popular, MySpace-run application on their sites. iLike rose to prominence based heavily on the strength of its Facebook application, which lets users share their current music listenings with friends. It also has popular applications on sites like Hi5 and Bebo (owned by AOL). The purchase of iLike would reinforce MySpace's push to become a hub for media and entertainment.

TechCrunch claims that MySpace, not MySpace Music (a joint venture between MySpace and record labels), has agreed to acquire the music site for $20 million. PaidContent's Rafat Ali, on the other hand, claims the price is higher. Silicon Alley Insider points out that if, and when, the purchase is completed, MySpace will own the top music app on Facebook; roughly 10 million profiles feature the iLike app. The iLike purchase would also give MySpace its own dedicated music store. Currently, MySpace Music simply links to Amazon MP3 downloads. But iLike recently launched its own marketplace, which could provide a more reliable source of income. Like the recent acquisition of FriendFeed by Facebook, we're stuck playing a wait-and-see game as to how the combining of the social networks will play out. But if leveraged right, iLike could be a powerful stride in MySpace's return to relevance.

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