Last.fm / CBS deal observations

Couple of observations on the Last.fm (popular social music site) sale to CBS Corp (US media giant), picked up first by me here.

• A commenter in this article (covering the fallout from users baulking at the possibilities of interference) is possibly right that all CBS wants is a better pulse on GenX/Y audiences but they wont interfere and in the name of research, they'll run at a loss. This is a sensible citizen research source strategy but is it sensible business strategy. Why buy just to be able to tap into a research base (blogosphere is just as good and free) in order to then build elsewhere based on the knowledge (as suggested by commenter)? All the value is in the acquired service brand and with its users and not doing anything to influence enhancements sensibly in line with CBS strategy does not make sense.
• Price ($280m/£140m) is steep for 15 million "active" users considering the above and ROI is going to be a long time coming unless they get their act together on a sensible revenue stream.
  
• On the last point, I have it from various sources that mobile is hot on the Last.fm agenda, either directly from Last.fm management or from CBS or both. Sensible considering mobile music is hot, hot, hot! I only have to look at the latest acquisition in this space (my erstwhile employer - Sony NetServices, purchased by Real Networks). Nice take on that deal by GigaOM here. Of course there's Apple's strategy with iPhone to consider as well which I wrote about here.
  
  

As an avid Last.fm user myself (see playlist at right), I'm not holding my breathe that this deal will have any positive impact on the service, certainly not in the short term while the integration work proceeds. I'll be watching...



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