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Media - Monday, April 7, 2008

Buzznet SocNet Buys Stereogum Blog

This deal is small potatoes but it might mark an interesting extension for aspiring social networks. In April, Buzznet raised a $25M third round, some of which comes from Universal Music Group, reports PaidContent.org. At the time it bought Steve Case-backed Qloud - a music application. Today it is buying popular music blog Stereogum, which is also launching a sister site with an entertainment focus. There was no disclosure on the price paid for Stereogum.

Let's say that Buzznet paid $2M for Stereogum, with its warchest and the profitability of many popular music blogs, it might continue to buy-up other popular entertainment and music blogs. We think this would indeed be a smart counter to vanilla music based social networks like MySpace. The question will be is does Buzznet have the management caliber to hold a challenging roll-up together. Over the summer, the company named Tyler Goldman as its new CEO. He was with Movielink, Broadband Sports and Feedster.

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