POP CULTURE AND MUSIC COMMUNITY Buzznet has completed the acquisition of music blog Stereogum for close to $5 million in stock. The Los Angeles-based social network has also agreed to pay "a significant sum" for the media-sharing software maker Qloud, according to a source close to the deal who wished not to be named.
However, reached for comment, Buzznet CEO Tyler Goldman insisted acquisitions were not--nor will they be--a cornerstone to the company's growth strategy.
"Acquisitions are not an important part of our strategy," Goldman said. "Like the best communities online, we're growing organically."
The investments come less than a week after Buzznet closed a round of financing in the neighborhood of $25 million--news first reported by industry blog paidContent, but later confirmed by Online Media Daily through an independent source. Universal Music-owned Interscope reportedly contributed to this latest round.
Presently a destination for pop-punk and alternative rock fans and artists, the deals are designed to assist in Buzznet's expansion into new music genres.
"Stereogum is the most respected voice on the Web covering music," said Buzznet's general manager Scott Boyd.
As a result of the acquisition, Stereogum on Tuesday plans to launch Videogum, a new entertainment blog focused on what's happening in the world of pop culture programming, including television, movies, Web shorts and video games.
Backed by Steve Case, Qloud is perhaps best know as the maker of the "My Music" application on Facebook, which has nearly 2 million installed users. The service offers free streaming of music and videos on users' social network of choice based on their favorite artists and iTunes playlists.
Last year, Buzznet raised roughly $6 million in a round led by Redpoint Ventures and Anthem Venture Partners.
Like MySpace in its early days, Buzznet is focused on musicians and music culture, with typical offerings of blogs, videos, and photo-sharing features.tag: social network, Blog, Buzznet, StereogumQloud, Facebook, iTunes