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CBS Buys For $280 Million; Aims To Attract Younger Demographic

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CBS is acquiring for $280 million, ending months of speculation as to the likely buyer of the UK-based social music recommendation engine.

“ is one of the most well-established, fastest-growing online community networks out there,” CBS CEO Leslie Moonves is cited as saying in a statement LA Times said it obtained ahead of an official announcement Wednesday. “Their demographics also play perfectly to CBS’ goal to attract younger viewers and listeners.” LA Times, speaking to an unnamed CBS exec, claims on-site advertising will be beefed up, with a new array of music channels paid for by sponsors.

Last-fm co-founder Martin Stiksel confirmed the deal to BBC News: “This move will really support us to get every track ever recorded and every music video ever made onto With a strong partner like CBS, this is now within our reach. They want to move from a content company to an audience company, giving the audiences control and learning from this and that’s why was their choice.” Stiksel said would continue to operate independently, adding being based in London was best for a music-related company. has successfully negotiated deals to use music from EMI, Warner Music Group and a range of indies and, seemingly staking itself out as an online competitor to former CBS stablemate MTV, recently announced plans to let users create a recommendations-based video channel (an earlier rumor held that MTV owner Viacom would buy for $450 million). Claiming Universal and SonyBMG are soon to come aboard, the site would be permitted to run tracks from all the majors. CBS would conceivably be able to marry many of’s features with its radio network.

One Response to “CBS Buys For $280 Million; Aims To Attract Younger Demographic”

  1. BUT.. will CBS PAY ROYALTIES to these artists, or will they just lie, cheat and steal, as is becoming the American way nowadays. It seems these corporate bastards can do anything they please, re-write any contract and break the law as they see fit. MySpace is currently breaking the law, and they get away with it.
    Corporations in the US run the country and the government is powerless against them. That is Fascism, and the current administration has only strengthened and supported it.

    HOW is CBS going to pay all these artists ?? If you stream someone's work, you pay BMI or ASCAP. If you don't you are breaking the law. If it plays on a non-interactive radio station, you have to pay for the sound recording.