SANTA MONICA, CA (Hypebot) â€“ Venture capitalists have been very active in the online music space in recent months and now record labels are jumping into the fray. This week music-focused social networker Buzznet grabbed a third round of $25 million in funding including several million dollars from Universal's Interscope, according to PaidContent. Exactly what the label hopes to gain form the deal remains unclear.
The funding will in part be used for acquisitions. Just a few months ago BuzzNet bought popular indie music blog Stereogum. The deal was facilitated after the blog's early investors Bob Pittman and Jason Hirschhorn of SlingMedia traded their equity stakes for stock in BuzzNet.
Buzznet is already using some of its new funding to buy music social network application provider Qloud. (Mashable) Other acquisitions appear to be in the offing. The Daily Swarm has a letter from Buzznet to a music blogger offering to talk about a deal.