CBS Buys Last.fm for $280 Million

CBS has announced it is buying social networking music service Last.fm for $280 million.

In a move to boost its appeal to the online-savvy youth audience—and enhance its online comminty features across its online properties—CBS Corporation has announced it has agreed to acquire the community-based music service Last.fm for $280 million in cash. The online social music network currently boasts over 15 million users in over 200 countries; CBS plans to let Last.fm run as an independent entity which leveraging its online community and interactive strategies across other CBS online properties.

“Last.fm is one of the most well established, fastest growing online community networks out there,” said CBS President and CEO Les Moonves. “They have a great management team that understands how to build an engaged and passionate community where users learn, discover and share music globally.”

Last.fm’s main claim to fame is its music recommendation system, which recommends new music to listeners based on the music they play, and comparing their behaviors to music fans with similar habits. Although music recommendation systems aren’t unique (Pandora, iLike, and others offer similar features) last.fm has consistently won praise for its technology and user-driven features. The company recently inked a deal with major labels Warner Music Group and EMI to play tracks from their artists on the service.

According to Last.fm’s Richard Jones, the Last.fm team will stay in London, remain focused on music, and will stay committed to keeping the Last.fm platform open and its customers’ privacy policy intact. “CBS understands the Last.fm vision,” wrote Jones in the company blog. “CBS are one of the few companies who needed no explanation of what we are doing, and we were impressed at how progressive their plans are.”