NEW YORK (Hypebot) – Just weeks after Warner Music announced that it had written off all $16 million that it had invested in imeem plus another $4 million in debt, the two companies are back doing business together. WMG will now take a larger share in the struggling music startup according to Peter Kafka at MediaMemo. No cash has exchanged hands this time, but WMG is taking the shares in lieu of licensing fees now calculated at lower rates.
The move by WMG is another sign that the major labels are starting to understand that making it too expensive for the most popular avenues of music discovery to survive is not in their best interests. Imeem reportedly has to raise another $4 million to survive for any length of time, but this new commitment by Warners makes that future more possible.
