AP: MySpace in talks to buy imeem

/ Source: The Associated Press

Online social hub MySpace is in talks to acquire struggling free music streaming site imeem.

That's according to two people familiar with the matter who spoke on condition of anonymity because talks are confidential.

San Francisco-based imeem launched its advertising-supported free music business in 2007, but the company is having trouble making ends meet.

MySpace sees value in the company's users, technology and its executives, including founder and chief executive Dalton Caldwell.

As a unit of media giant News Corp., MySpace is able to support losses at the company stemming from royalties owed to recording companies.

The music industry continues to experience falling sales of CDs, while digital revenues have not yet made up the difference.