Is MySpace About to Own the Biggest Music App on Facebook?

In what could be an ironic turn of events, iLike, the developer of the largest music application on the Facebook Platform with nearly 10 million monthly active users and one of the two applications formerly deemed “Great Apps” by Facebook, may soon be owned by MySpace, according to TechCrunch. paidContent confirms the talks.

Rumors are the deal is in the $20 million range and may close this week. If that number seems low, it is – iLike was valued at $53 million during its last round of funding in 2006, and has raised a total of $16.5 million to date from Ticketmaster, Bob Pittman, Vinod Khosla, and Scott Banister.

If the deal goes through, it would be new MySpace CEO (and former Facebook COO and CRO) Owen van Natta’s first major acquisition since taking the helm, and MySpace would solidify its position as the leading platform for musicians to build their identity and distribute content across social networks.

It would also be an very interesting turn for Facebook and the Facebook Platform, given the company’s historic reluctance to get involved in the music business directly itself. Last year, rumors swirled around whether Facebook would build its own music application, bless a third party application like iLike’s or someone else’s, or even acquire iLike. However, Facebook CEO Mark Zuckerberg has said publicly since that the company decided to steer clear of music due to the complicated rights issues involved.

Now, it is possible that MySpace will be running what is currently the biggest music app on Facebook by far. We’ll let you know as we hear more.

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