MySpace Acquires iLike

MYSPACE MYFACE

We wrote before on the ailing health of MySpace.  It seems that this week they have taken measures to confront their loss of network share, and get back to doing what they do best (music) with the acquisition of music discovery service iLike.

According to the beeb:

‘iLike reportedly turned down an offer from rival Facebook, where it is the top music application.

The company has 55 million registered users and has been prominent on most social networks apart from MySpace…’

This is interesting as a development, and may help to keep MySpace in the game.  And at a reported purchase price of $20 Million, that’s a smart investment, for all those users.  More and more we see that the web 2.0 universe is commercially driven by building communities, and giving them what they want.  Myspace had been losing its edge in this regard, so it is healthy to see that they’re forging synergies with people who are developing popular apps in their core interest area.

It will be interesting to see how Facebook responds to the news that a top app had defected to a competitor, and word on the wire is that Facebook will begin to restrict access to iLike initially, and may in the end block the app altogether.

The fact that 80% of iLike’s reported 55 million users come from Facebook means that a significant amount of Facebook denizens will be affected by this, and we can expect the usual response of disgruntled petitions, followed by mass protest groups, followed by Facebook doing exactly what they like, as this has largely been the MO up until now.

Welcome back MySpace, now DO something with it.

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