Music subscription service Rhapsody has nabbed the teams behind the two music discovery startups Ex.fm and Soundtracking in two separate acqui-hire type transactions.
Ex.fm had shut down late last year, only to reemerge soon after and then once again announce that it was shutting down in May. On Monday, its team announced the acquisition on its blog Monday, writing in part:
“By teaming up, we can build the ultimate music service with an amazing social discovery engine backed by Rhapsody’s catalog of over 30 million songs. The idea of combining the best of Exfm with the best of Rhapsody has us all extremely excited! For the next few months, we will be heads down working. When we resurface, we are sure you will love what we have built. We’ve got some pretty amazing plans for iPhone, Android, Windows Phone and the Web.”
And a Rhapsody spokesperson sent me the following statement:
“The exfm team have done a great job of helping people discover more music to enjoy across the web. We’re thrilled to have them join Rhapsody, and put that product, design and technology expertise to work on the things we’re building here. Together, we’ll help music fans explore, play and love more music.”
Financial details of the acquisition haven’t been disclosed. Ex.fm’s entire team of three will join Rhapsody to work on the company’s core subscription products, and Ex.fm cofounder Dan Kantor will become Rhapsody’s VP of Product.
Separately, Schematic Labs, the company behind Soundtracking, announced that its team is joining Rhapsody as well. Soundtracking, which is a kind of social network for music discovery, will remain up and running for the time being. Schematic Labs had raised a total of $5.7 million from Softbank, Accel, True Ventures and others. A Rhapsody spokesperson confirmed the acquisition, sending me the following statement:
“It’s true — the Schematic Labs team has joined Rhapsody. With Soundtracking, they created an entirely new way for people to express themselves by sharing their musical moments. We’re excited to incorporate that creativity and community focus within Rhapsody’s suite of music services.”
Rhapsody recently announced that it now has more than two million paying subscribers across its Rhapsody, Napster and unRadio services. The pioneering music subscription service recently launched a Pandora-like (S P) product dubbed unRadio in cooperation with T-Mobile. (S TMO) Rhapsody’s SVP for the Americas Paul Springer also told me in a recent interview that the company may launch additional apps or services in the near future, saying: “We offer a portfolio of products.”
Updated at 11:47am with a statement from Rhapsody, and at 1:35pm with information about the Soundtracking acquisition.
Disclosure: Schematic Labs has been backed by True Ventures, a venture capital firm that is an investor in the parent company of Gigaom.