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May 30, 2007
LastFM Sold To CBS For $280M
Paying $280M (£140m) for London-based Last.fm, which raised VC from Index Ventures and some well-known angels just one year ago, is a much bigger deal than its Wallstrip, video blog purchase earlier this month. But the idea behind the deals are the same, CBS wants to get up to speed on what makes online properties hot.
Founded in 2003, LastFM monitors the music that each user listens to and accordingly recommends music that the user might enjoy. The site also allows music fans with similar tastes to communicate and share their playlists.
The site also provides an ad-supported stream of the music from the hundreds of independent labels it has deals with. It tends to get great user reviews.
The deal brings together again old friends - Quincy Smith who runs CBS' Interactive group and Index Ventures' Danny Rimmer.
Recent rumors were that Viacom would pay $450M for LastFm. And many comentors are wondering why the valuation seems low, why there was not a bidding up battle and why LastFM didn't hold out for a higher bid. Our speculation would be that bidders might be concerned about potential law suits from music owners - suits they might well win but that would cost a lot to fight.
Read - CNNMoney report
Posted on May 30, 2007 01:58 PM | Posted to News And Updates | Permalink
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