In a deal which will reportedly cost MySpace $8 Million, the giant social networking website is all set to acquire streaming music service Imeem, which was one of the first to bag streaming deals with all four major American record labels. Although no confirmations have been made about the takeover price and other details, sources have hinted that MySpace is likely to give imeem $1 Million in cash, and the balance will be paid in the form of "earn outs and accounts receivable".

imeem started as a social networking application which was entirely music-based in 2003, and has since then been a stand alone service. It is still most likely to be stand-alone for quite sometime, although there are good chances that it might be folded into MySpace Music a little later.

Almost 50% of San Francisco based music streaming service's staff of 55 will be laid off as a part of the acquisition deal.

Both MySpace and imeem are a part of the search engine market giant Google's latest music search service.