iLike will only get $13.5 million in cash from its sale to MySpace, of which $8 million will likely go to one of its backers, Ticketmaster, AllThingsD’s Kara Swisher reports. Another $6 million is earmarked as a 2.5 year earnout for key employees, including the company’s twin brother cofounders, Ali and Hadi Partovi, she says.
Meanwhile, the deal is reportedly delayed while they’re sorting out tax issues — whether to tax the earnout as long-term capital gains, or salary, which could be a 3-4x higher tax rate.
Who else took a sniff at iLike?
Swisher: So, [Allen & Co.] ginned up a small group of suitors, which included Facebook, Activision Blizzard (ATVI) and Microsoft (MSFT), as well as MySpace.
Of the three, Activision was most serious, with interest in integrating iLike’s community and technology tools with its Guitar Hero franchise.
But Activision never actually made a formal bid, said sources.
Both Microsoft and Facebook also considered the purchase, but sources said they would only offer stock in a deal. But iLike wanted cash in the deal.
The Partovis were also was wary about working at either place.
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