Myspace Music Company

MySpace co-founder Chris DeWolfe came to a worrisome conclusion last year. The online community, which began as a place where musicians connected with fans, had stopped innovating. Proof of how its musical star had faded became clear during a conversation with Interscope Records Chairman Jimmy Iovine, who was the producer behind Stevie Nicks and Bruce Springsteen and with whom DeWolfe had previously struck a deal to distribute CDs on a MySpace Records label. Iovine didn't mince words.

MySpace continued its evolution from teen hangout to entertainment destination, announcing Wednesday that it would acquire ILike, one of the premier music recommendation services -- and the most popular music application on rival social network Facebook. The deal, estimated to be worth about $19 million, signals MySpace's intention to dominate the online social music scene, building on the gathering momentum behind MySpace Music, a nearly year-old joint venture with the major music labels whose number of visitors has increased nearly 200% since its launch in September.