So, another mammoth price for an online media business. Last.fm has been bought by CBS Corporation for $280m, making it the largest-ever UK Web 2.0 acquisition…so far.
Last.fm was founded in the UK in 2002 and claims it has more than 15 million active users.
I’ve heard lots of good reports from Last.fm users but I have an account and have never really got engaged with the service. I wonder if in the due diligence I was counted as an active user?
It is always interesting to do this sum:
price paid/active users = price per email address for future marketing
In this case it is:
£140m/15m = £9.33
I seem to recollect a figure of £10 per email address being bandied about when Friends Reunited was purchased by iTV.