Home Rumor: Imeem Laying Off Staff and Looking for an Exit (Updated)

Rumor: Imeem Laying Off Staff and Looking for an Exit (Updated)

According to PaidContent, Imeem, one of our favorite streaming music services, is starting to feel the pressure of the economic downturn and is planning to lay off a quarter of its workforce. According to this report, Imeem is also looking for a potential candidate to buy the company.

Imeem is one of Sequoia’s portfolio companies, so it doesn’t come as a surprise that it is looking to keep its budget under control, but we do think that Imeem is going to have a hard time finding a buyer in these tough economic times.

Update: We just got a response from Imeem. The company is indeed laying off 25% of its staff (20 positions) in order to cut cost, but wouldn’t comment on the rumors around a potential sale of the company.

Imeem’s last funding round was a Series C round led by Sequoia in April, though the company did not reveal the actual amount of this investment. Warner Brothers also invested about $15 million in Imeem. Imeem has licensing deals with all of the major record labels, as well as with a large number of independents labels.

$200 Million

While Imeem’s valuation is a bit hard to estimate, PaidContent reports that Imeem and its investors would be looking for somewhere “north of $200 million.” Given the current economic climate and the strong competition in the streaming music business, $200 million might be a rather high number, however, and this will surely scare off quite a few potential buyers.

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the tech industry for major developments, new product launches, AI breakthroughs, video game releases and other newsworthy events. Editors assign relevant stories to staff writers or freelance contributors with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Get the biggest tech headlines of the day delivered to your inbox

    By signing up, you agree to our Terms and Privacy Policy. Unsubscribe anytime.

    Tech News

    Explore the latest in tech with our Tech News. We cut through the noise for concise, relevant updates, keeping you informed about the rapidly evolving tech landscape with curated content that separates signal from noise.

    In-Depth Tech Stories

    Explore tech impact in In-Depth Stories. Narrative data journalism offers comprehensive analyses, revealing stories behind data. Understand industry trends for a deeper perspective on tech's intricate relationships with society.

    Expert Reviews

    Empower decisions with Expert Reviews, merging industry expertise and insightful analysis. Delve into tech intricacies, get the best deals, and stay ahead with our trustworthy guide to navigating the ever-changing tech market.