Last.fm founders rock out with £140m deal

31/05/07 10:17

The three entrepreneurs who founded interactive radio station Last.fm have sold their business to the American broadcaster CBS in a deal worth £140m.

Martin Stiksel, Felix Miller and Richard Jones founded the station in Shoreditch, London in 2002 and are now estimated to have gained £38m each from its sale.

The trio will now remain with the company and say it is an opportunity for them to 'really make Last.fm shine'.

In its short history Last.fm has attracted more than 15m active users worldwide by offering users the chance to customise their music streams and to interactive with other members in the ‘community’.

The CBS buy-up is being compared to News Corps acquisition of MySpace where a well-established media giant bought out a new and highly fashionable company for a multi-million pound sum.

It is also further evidence of how long-standing media organisations are planning on surviving in the information age; by buying exciting new developments started by internet entrepreneurs.

It is believed that CBS is particularly interested in using Last.fm’s technology to build new online communities which will utilise its own archive as well as other material.

The company has an ageing audience in the US and the deal will be seen as a way for the media giant to attract new young adult viewers.

In his blog Richard Jones said of the deal: “The team here have spent a lot of time this year discussing what the future should hold for Last.fm, and while contemplating raising some additional venture capital we were approached by CBS.

“This deal with CBS gives us a chance to really make Last.fm shine, and gives us more flexibility than other funding options would for doing all the crazy stuff we’ve had scribbled on whiteboards for years.”

“CBS understands the Last.fm vision, the importance we place on putting the listener in charge, the vibrant and vocal community, the obsession with music stats, and our determination to offer every song ever recorded.”

Last.fm has been previously backed by VCs Index Venture Management and Atomic Investments and it is understood that they have been keen to sell the business.