LOS ANGELES (AP) — Social networking hub MySpace said Wednesday it is acquiring iLike, a popular music application on rival Facebook, in the first move by new management to expand after a series of drastic cuts and writedowns.
The $20 million agreement to purchase iLike confirmed rumors that have circulated this week.
ILike, which has 55 million users, will remain headquartered in Seattle, and its management team will stay intact, with brothers Ali and Hadi Partovi in the top two slots. They founded the service in 2006 with $16.5 million in venture capital, mostly from Ticketmaster Entertainment Inc.
MySpace CEO Owen Van Natta, who replaced co-founder Chris DeWolfe as MySpace chief executive in April, told reporters on a conference call that iLike technology will help MySpace users share songs, videos and games away from their MySpace home pages.