Warner Music Group (WMG) is set to make a second investment in music/social networking site imeem, we’re told.
No details yet on size of the deal or valuation; we’re assuming that Warner will be making a pro-rata investment as a part of a new round led by Sequoia this spring.
Last year Warner invested in iMeem after settling a lawsuit with the site, which allows users to stream individual tracks on-demand; the site has since struck deals with the other major labels: Universal Music Group, Sony BMG and EMI. We believe but haven’t confirmed that Universal has also taken an equity stake in the startup; we’re unclear about Sony BMG and EMI.
WMG has touted its investment in imeem as evidence of the company’s forward thinking about digital music and its willingness to work with interesting startups. And CEO Edgar Bronfman Jr. brought up the deal again during Thursday’s quarterly earnings call. Warner’s initial stake in the company, he said, is already much more valuable than it was last year. From Seeking Alpha:
If we look at what is happening with iMeem right now, based on its funds raised [we listened to the call and could have sworn Edgar said “fund-raising”], I would suggest that our investment is worth a great deal more than we paid for our original investment.
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.