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Social Networking - Monday, August 11, 2008

Warner Music Throws Elbows With Investments In Lala and Imeem

Warner Music group has invested $20M in Lala.com and $15.M. in Imeem Exact date of the investments was not disclosed as they were uncovered the details in Warner Music Group's 10Q.

Sadly for Imeem and Lala we expect that the they walked away with lousy valuations but won comittments from Warner that law suits would not be forthcoming - Warner made a deal that the Bay Area startups could not refuse.

In July, Imeem becoming the No. 1 streaming music site in the US, according to Compete. In June, Imeem had more than 27M unique visitors. Imeem also claims more than 85 million total unique visitors of its widgets.

Imeem is backed by Sequoia Capital and Morgenthaler Ventures. It reached a revenue-sharing licensing agreement with Universal Music, Sony BMG Music Entertainment, Warner Music Group and EMI Group. It also won a deal with Viacom's MTV Networks to show videos from Comedy Central, MTV and VH1.

Naysayers say that Imeem took the short side of the revenue sharing deals - putting off law suits by buying off would be suitors.

Visit - Imeem
Visit - Lala