A friend of mine once said, "if you have a consistent, reliable source of traffic, you'll never be poor". He was right.

iLike has a ton of traffic. It is a recommendation service so beyond passively listening to music, you recommend music to your friends. This makes it very powerful.

MySpace presumably has a fair bit of money to invest in things like this. Their core traffic is decreasing but they continue to have a foothold in music.

So, add the traffic of Facebook & MySpace to their success in music and they'll likely have a win. The smart folks in the back room of MySpace have likely had a good look at iLike and have a way to extend it beyond Facebook too. What about Twitter and other burgeoning social networks?

The other thing to think about is the revenue streams from iLike. Not only can they make money through the distribution and promotion of music but there are a variety of advertising options that could be implemented. I'm sure that the accountants had a ton of fun in Excel calculating post acquisition value.

Is it worth all that money? Maybe not... but those money guys are pretty smart and remember that it's not all cash & cristal money... rather stock, assets and valuation.

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