Myspace Looking for $50 Million to Relaunch as Spotify and Pandora Killer

By David Tobia
November 21, 2012

After spending the last year redesigning the once thought to be dead Myspace, Interactive Media Holdings plans to relaunch the site in 2013 as a direct competitor to Spotify and Pandora, according to documents obtained by Business Insider.
Specific Media bought Myspace during the summer of 2011 for $35 million, and then changed the company name to Interactive Media Holdings. The company then rebranded Myspace as a destination for unsigned artists to showcase their music.
Myspace traffic has risen 36 percent since the acquisition, but still stands to lose $40 million this year and a projected $25 million next year.
Interactive Media Holdings is looking for another $50 million in funding, of which “$10 million will go to marketing, $15–$25 million will go to licensing deals with the music labels, and another $15 to $25 million will be reserved for ‘general working capital,'” writes Business Insider.
“Interactive says the big competitive advantages for MySpace versus Spotify and Pandora is that it pays labels a lower rate for song plays than Spotify and Pandora. MySpace relies on 27 million songs from unsigned artists, who account for 50 percent of the music played on its site.”
The post includes Interactive Media Holdings’ pitch deck, an interesting inside look at how tech companies sell themselves for a significant funding push.

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