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That deal just looks iffy. A sub-million dollar takeover for a site with 16 million active users ? - at a few cents per user there should have been a good half
by ig1 17y ago
That deal just looks iffy. A sub-million dollar takeover for a site with 16 million active users ? - at a few cents per user there should have been a good half-dozen competitors willing to purchase. But it ended up having assets sold below market value to a group part owned by one of the current owners. That seems the kind of activity that would get you on the receiving end of a fraud investigation.
- crad 17y agoWith a business model that is dependent on licensing content from organizations like the RIAA, I think it came down to liabilities and licensing costs more than anything else. Don't under-estimate the cost of running a music streaming site. With non-indie content, it's very expensive.
- tree5 17y agoWell, you still need to take its debt into account as well, which I'm assuming Imeem has quite a bit if it sold for so low with 16 million users. A company with $10M in debt, for instance, that's purchased for $2, is really a $12M acquisition.
- sachinag 17y agoIt was an asset purchase, not an acquisition, so the debt stayed behind.
- ComputerGuru 17y agoOuch. That really sucks, because without assets there's no way to pay off that debt. Unless of course they can just file for Chapter 11? I don't know much about finance, but if they can, that would be really, really cheap!
- deleted 17y ago[deleted]