PAL ALTO, MA (Hypebot) – Amie Street acquired Songza way back in October, but was keeping the deal under wraps until ready to announce a new offering according to TechCrunch. The acquisition reportedly was for part stock and part cash with a total in the high six to low seven figures.
Songza searches for songs from YouTube and elsewhere on the net via a simple search, play and playlist interface that requires no registration. But the site has come under fire for rights violations even though it does not host any songs itself. Amie Street has, on the other hand, garnered label respect working within the system to deliver dynamic fan driven download pricing.
These are tough times for ad supported music and Aime Street was apparently attracted to Songza's million plus monthly user base. But they may find that they have grabbed a tiger by its tale; as the labels seem to have little affection for Songza and it's somewhat tenuous claim to legitimate usage.