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Summary:

Mercora, an early entrant into the social music and music search space that recently rebranded itself as Social.FM, has shut down and suspended operations. After being tipped off by a source, I tried reaching the company’s executives, but haven’t heard from them. The site has gone […]

Mercora, an early entrant into the social music and music search space that recently rebranded itself as Social.FM, has shut down and suspended operations. After being tipped off by a source, I tried reaching the company’s executives, but haven’t heard from them. The site has gone black.

“The Company is unfortunately no longer in business and therefore cannot continue its service to you. Regards,. Mercora, Inc.” Over on the Social.FM home page, the company said “To our Valued Customers,. We regret to inform you and apologize for this inconvenience, but Social.FM will be shutting down the system on July 31st, 2008.” The MySpace widgets have also gone on the blink.

The Sunnyvale, Calif.-based company launched in June 2005 and had raised $5 million from Norwest Venture Partners. It was started by Srivats Sampath, the former CEO of McAfee.com, and launched with a pretty nifty P2P radio software client.

Social.FM had planned to make money by selling ads next to music searches that were conducted on its P2P network. It eventually lost out to more visible competitors, like Pandora and Last.fm, and changed its strategy. Like many other music-focused startups, the company had faced some tough times when the royalty rates for webcasting music on the Internet were raised.

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  1. LaunchingToday.com Sunday, August 3, 2008

    I don’t understand these fast closures of large-ish websites. Why not stay alive (with barebones staff) and try and settle for a low acquisition?

  2. Well, it’s been very interesting project.

  3. Jeremy Pepper Sunday, August 3, 2008

    Nice scoop.

    When I would get pitched by their firm – and that was alot – it seemed like the messaging was all over the place, and I never was able to grasp what they were supposed to be about after the initial launch.

  4. Social.fm joins the dodos Monday, August 4, 2008

    [...] Social music discovery service Social.fm has joined the dodopool, according to a report at GigaOM. [...]

  5. Social.FM in the Deadpool Monday, August 4, 2008

    [...] social network in a similar manner to Last.fm, has confirmed it is shutting down. GigaOm carried a tip-off to that effect, now the site is carrying the following message: To our Valued [...]

  6. Mercora AKA Social.fm bites the dust | Startup Meme Monday, August 4, 2008

    [...] bitten the dust; the latest service is Social.fm, a portal for Social music delivery as reported by GigaOm. Known as Mercora before it recently re-branded itself to Social.fm, finally pulled the shutters [...]

  7. Music site Social.fm bites the dust | Blogging Monday, August 4, 2008

    [...] Social.fm, a music site that was known as Mercora until last year, has officially folded. The shutdown was first reported by GigaOM. [...]

  8. Muere Social.fm – FayerWayer Monday, August 4, 2008

    [...] no haber logrado crear una masa crítica de usuarios suficiente para justificar sus inversiones (via) [...]

  9. Social.fm Closes Down ~ The Blade by Ron Schenone, MVP Monday, August 4, 2008

    [...] Source. [...]

  10. Social.fm echa el cierre [ENG] Monday, August 4, 2008

    [...] Social.fm echa el cierre [ENG]gigaom.com/2008/08/03/socialfm-formerly-mercora-shuts-down/ por MundoLibre hace pocos segundos [...]

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