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Dealipedia - imeem acquires snocap

imeem acquires snocap

Deal Participants:
Acquiring Company: imeem View Profile Charts Homepage
Target Company: snocap View Profile Charts Homepage
Deal Financials:
 
Date:
Closed: Apr 07, 2008

Notes:

Digital music wholesaler Snocap, long searching for a buyer, is being acquired by music streaming site Imeem.

Snocap was founded in 2002 by Napster creator Shawn Fanning, Jordan Mendelson and Ron Conway. The company raised $10 million from Conway, Morgenthaler Ventures and WaldenVC and did high profile distibution deals with MySpace and others, but the business failed to scale (since people don’t really pay for music any more). Last year they also partnered with Imeem, who may see an acquisition as a better end result than Snocap simply shutting down.

PRESS RELEASE

imeem Acquires SNOCAP
Monday April 7, 10:00 am ET
Strategic Acquisition Enhances imeem's Product & Technology Offering for Independent Artists and Music Labels

SAN FRANCISCO -- imeem, the leading social media network, announced today it has acquired SNOCAP, the leading technology company for digital rights and content management. This strategic acquisition provides imeem with powerful content identification technology, a comprehensive Digital Registry, and an enhanced team of executive and engineering talent. Financial terms of the deal were not disclosed.

The acquisition also expands the mix of products and services the imeem social network offers to artists and music labels to help them take advantage of new opportunities to market, promote and make money from their music through widgets and applications.

“The SNOCAP team built a great technology platform that will be useful to imeem as we continue to grow,” said Dalton Caldwell, imeem’s founder and CEO. “Together we’ll build on that work in the coming months, and give labels and independent artists new ways to promote and sell their music through imeem, MySpace and anywhere on the web.”

“imeem shares SNOCAP’s focus on enabling artists to promote their music in new ways,” said Rusty Rueff, CEO of SNOCAP. “I’m excited about the new possibilities for the SNOCAP service, and more importantly, new opportunities for SNOCAP artists now that we are a part of imeem.”

SNOCAP created a proprietary content identification platform and Digital Registry to give unsigned and independent artists and labels control over the online distribution of their music. For the past year, imeem has used SNOCAP technology to automatically identify tracks as they are uploaded by users, determine if the content owner has permitted full streaming of their music, and manage payments to artists and labels for use of their music on imeem. As a result, imeem gives consumers the ability to upload, listen to and share music, while offering artists and labels the choice to make their music available through imeem. Artists and labels who make their music freely available for streaming on imeem share in the site’s music advertising revenue. To date, there are over 7 million unique songs in SNOCAP’s Digital Registry.

The SNOCAP platform also enables unsigned and independent artists to sell music on MySpace and other websites through the SNOCAP MyStore product. SNOCAP will continue to operate its products and services without changes to users’ accounts or services. Later this year, the company will make several enhancements to the SNOCAP MyStore.

Over 110,000 unsigned and unaffiliated artists, and independent and major record labels, are using SNOCAP MyStores to manage their own distribution and sell their music online. A wide variety of well-known artists use SNOCAP MyStores to sell their music, including The Rolling Stones, Coldplay, Diddy, Nickelback, The Shins, LCD Soundsystem, Lily Allen, Sean Paul and Corinne Bailey Rae, among others.

As part of the acquisition, SNOCAP’s chief operating officer, Ali Aydar, is joining imeem as its vice president of operations. Aydar was an early employee and senior executive at both SNOCAP and the original Napster. He brings with him a talented team of engineers and music industry professionals.

SNOCAP was founded by Shawn Fanning, Jordan Mendelson and Ron Conway. The company was backed by WaldenVC, Morgenthaler Ventures and Court Square Ventures.

imeem is currently the third largest social network in the U.S. with over 24 million unique visitors a month. imeem's network of embeddable audio and video playlist widgets reach over 100 million consumers a month, according to Quantcast.

imeem's investors include Morgenthaler Ventures and Sequoia Capital. The company is based in San Francisco.

About SNOCAP

SNOCAP's unique digital registry provides real-time management of online licensing, rights and distribution of digital music, making it easy for artists and labels to sell music directly to their fans over the Internet and helping to power a more vibrant digital music marketplace. Using SNOCAP's MyStores, independent artists can sell their music on any website and via online retailers anywhere, anytime, while remaining fully in control of the licensing and rights. SNOCAP's exclusive partnership with MySpace powers the MySpace Music Service.

In addition to MySpace, SNOCAP provides digital music and technology services to imeem, ReverbNation, ADA, the Universal Music Group, Warner Music Group, SONY BMG MUSIC ENTERTAINMENT, EMI, The Orchard, CD Baby, TVT Records, Artemis Records/Sheridan Square Entertainment, Beggars Group, InRadio, Koch Records, Nettwerk Records, Matador Records, Merlin, One Little Indian Records, Ryko Group and an extensive roster of leading independent labels. Founded by Shawn Fanning, Jordan Mendelson and Ron Conway in 2002, SNOCAP aims to be the trusted solution powering the global marketplace for digital media. The company is based in San Francisco, California. For more information, visit http://www.snocap.com.

About imeem

imeem is a social media network that enables users to discover, interact and express themselves with media, including music, video and photos, and form connections based on shared tastes and interests. By offering innovative media expression tools and social discovery features, including custom music playlists, video channels, photo slideshows and blogs, imeem enables its community to share their tastes with friends and fans on imeem and across the Web.

imeem is the first social network to partner with all four major labels as well as thousands of independent labels and video providers to offer free, on-demand streaming of all music and video content on an ad-supported basis. Since the launch of imeem’s Web-based service in March 2006, the community has grown to over 24 million unique users each month. imeem's network of embeddable audio and video playlist widgets reach over 100 million consumers a month, according to Quantcast. To learn more, visit http://www.imeem.com.

Copyright © 2008 imeem, inc. All rights reserved. imeem, the imeem tagline, the imeem logotype, SNOCAP, and SNOCAP MyStore are trademarks of imeem, inc. and its subsidiaries, which may be registered in some jurisdictions. All other trademarks used are owned by their respective owners.


Contact:

imeem
Gina Wilkinson, 415-205-8049
gina@imeem.com
Matt Graves, 415-290-3503
matt@imeem.com

Source: imeem

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Warning: date(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home/dealiped/public_html/deal_view_acquisition.php on line 746

Warning: date(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home/dealiped/public_html/deal_view_acquisition.php on line 746

Warning: date(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home/dealiped/public_html/deal_view_acquisition.php on line 746

Warning: date(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home/dealiped/public_html/deal_view_acquisition.php on line 746

Warning: date(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home/dealiped/public_html/deal_view_acquisition.php on line 746

Warning: date(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home/dealiped/public_html/deal_view_acquisition.php on line 746

Warning: date(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home/dealiped/public_html/deal_view_acquisition.php on line 746

Warning: date(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home/dealiped/public_html/deal_view_acquisition.php on line 746

Warning: date(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home/dealiped/public_html/deal_view_acquisition.php on line 746

Warning: date(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home/dealiped/public_html/deal_view_acquisition.php on line 746

Warning: date(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home/dealiped/public_html/deal_view_acquisition.php on line 746

Warning: date(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home/dealiped/public_html/deal_view_acquisition.php on line 746

Warning: date(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home/dealiped/public_html/deal_view_acquisition.php on line 746
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