We first
reported that Universal Music Group had taken a stake in social music site operator
BuzzNet Inc. in mid-January, but more details about the funding have begun to emerge, along with news that BuzzNet has also made a pair of acquisitions.
PaidContent's Rafat Ali
says the deal is worth about $25 million and includes an investment from Universal's Interscope division, and adds that BuzzNet now fully owns indie music blog Stereogum, following an exchange of equity stakes last fall. Meanwhile, Mashable
has learned that BuzzNet has bought social networking music application developer Qloud for an unspecified amount, representing an exit for stakeholders including Steve Case.
BuzzNet caters primarily to music fans, offering news, videos and community features built around artists and genres. The site has gained traction among fans of the so-called emo genre, identified with top-selling bands such as Fall Out Boy. Redpoint Ventures, Anthem Venture Partners and angels including Jeff Clavier previously
invested $7.5 million in BuzzNet's two rounds of funding, giving it a post-money valuation north of $20 million as of last summer.
-- Paul BonanosSee Jan. 14 post from Tech ConfidentialSee March 29 post about BuzzNet funding from paidContentSee March 30 post about Qloud acquisition from Mashable
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