Streaming music site operator
Imeem Inc. consistently declines to disclose its outside investors, but a
10Q form filed by Warner Music Group Corp. [
WMG] this week confirms that the record label invested $15 million in the startup. The filing discusses investments made during the nine-month period that ended June 30, 2008, and also confirms the label's rumored $20 million
investment in Lala.com Inc.
Warner originally filed a lawsuit against Imeem, then settled. Their strategic partnership was
revealed more than a year ago, while Warner's investment in Imeem came to light later. An Imeem spokesman
assured
me a few months ago that Warner was not given equity in exchange for a
license as part of the settlement, but rather invested cash.
Sequoia Capital and Morgenthaler Ventures are also
known to have stakes in Imeem. The startup has made a pair of acquisitions this year, including Snocap Inc. for a
reported $5 million in April and Anywhere.fm Inc. for an undisclosed amount in January.
Warner
pulled its songs from rival on-demand streaming service
Last.fm Ltd. in June and was said to be
seeking to renegotiate their licensing agreement. Warner was the first major label to strike a deal with Last.fm, but now figures to be seeking cash rather than equity, since Last.fm was
bought by CBS Inc. for $280 million last year.
-- Paul BonanosSee April 15 post on Imeem's funding from Tech Confidential
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