This week two deals show just how much belief there is now that the internet is the new broadcasting model, with CBS buying out Last.fm, a community based on discovering new music, and Fox Interactive Media closing the anticipated deal to buy both Photobucket and Flektor, a which offers users a suite of web-based tools to transform photos and videos.
The CBS deal cost it all of $280 million while the two Fox deals were not given price tags.
Last.fm is claimed to be one of the largest social platforms online with more than 15 million active users in more than 200 countries and CBS adds this property to its Wallstrip.com deal and investments in both Joost and Spot Runner.
“Last.fm is one of the most well established, fastest growing online community networks out there,” said Leslie Moonves, President and CEO of CBS Corporation. “They have a great management team that understands how to build an engaged and passionate community where users learn, discover and share music globally. Their demographics also play perfectly to CBS’s goal to attract younger viewers and listeners across our businesses.’ Last.fm adds a terrific interactive extension to all of our properties and also is a huge step in CBS Corporation’s overall strategy of expanding our reach online to transition from a content company into an audience company.”
As part of the acquisition, the Last.fm team, including founders Felix Miller, Martin Stiksel and Richard Jones, will continue to independently run the online network. The network was founded in 2002.
It’s not quite so clear cut how Photobucket fits in with Fox, as it is a popular photo and video-sharing service, and it’s hard to see what this gives it that it doesn’t already have in MySpace. However it looks like these deals may be more like mopping up exercises that the high priced web deals that accompanied MySpace, IGN Entertainment and YouTube.
“The acquisition of these two companies is a perfect strategic fit for us that reinforces Fox’s leadership in user-generated content,” said Peter Levinsohn, President of Fox Interactive Media.