Now that the dust is settling on the newly launched Google Music (if you don’t yet have it in your normal Google search results, you can use it here) that integrates LaLa and iLike/MySpace streaming music, all I can think of is this: What were Facebook and Ticketmaster thinking when they passed up the opportunity to acquire iLike?

MySpace is the big lottery winner here. They bought iLike for $20 million in August. What they got: a talented (literally) team that is starting to fill the executive ranks at MySpace, the biggest music application on Facebook, and, it turns out, a deal with Google that is now sending massive traffic flow directly to MySpace Music.

Our understanding from sources is that MySpace made an offer to iLike without knowing about the Google deal. Supposedly, since iLike was under NDA, all they knew was that iLike had a big partnership opportunity with some big company, nothing more. In hindsight the iLike deal looks smart even without Google. Add that in and it looks absolutely brilliant. I’m no fan of MySpace CEO Owen Van Natta, but I’ll give the man credit here.

TechCrunch writer Jason Kincaid traveled down to Los Angeles earlier today to cover the launch of Google Music Onebox. In addition to his live notes from the event and the panel, he managed to point his camera at just about everyone involved in the new service: Google Director Product Management Search R.J. Pittman, MySpace Music President Courtney Holt and LaLa founder Bill Nguyen. Jason also recorded his own first demo of the product, which didn’t go so well based on the mouse and browser setup.

Key takeaways – Google will integrate new partners as it makes sense. And while MySpace knew about the negotiations between iLike and Google prior to announcing their acquisition of iLike in August, the deal was far from certain. More on that in a subsequent post.

All are below:

I’m here at Capitol Records in Hollywood, California for a special media event where Lala, MySpace, iLike, Google and others are officially announcing the launch of Google’s Music Onebox — a special new kind of Google search result that will let you instantly stream songs directly from Google’s results page. We first broke the news of the feature’s impending launch last week, though none of the companies involved have been willing to comment on it until now.

Here’s how the new feature will work: Onebox will let users stream songs directly from Google’s search result page, and will also include additional content like tour information and music videos (the actual content shown will vary depending on the partner — more on that later). Enter a query for “Use Somebody”, and you’re going to see a small ‘play’ button in your search result that lets you stream the Kings of Leon song in its entirety, or buy the song. Clicking on the play button will bring up a small browser window that will immediately start streaming your song.

None of the companies involved will confirm the new Google Music service – we have “no comments” or absolute silence from Google, LaLa, MySpace and iLike. But the new service is all but confirmed. And we have the screenshots showing how the service, which will be announced on October 28, will look to prove it.

Matt Ghering, a product marketing manager at Google, has been one of the people talking to the big four music labels about the new service, we’ve heard from one of our sources. And he has supposedly sent these screenshots of the look and feel of Google Music search to various rights holders and potential partners.

The first screenshot shows how a search result might look on Google for a search for “U2.” A picture of the band is to the left of four streaming options for various songs, and the user has the option of listening via either iLike or LaLa. Click on one of the results, and a player pops up from the services that streams the song, along with an option to purchase the song for download.

One thing about MySpace – they’ve always had far more colorful executives than the more buttoned up Facebook exec team. Of course, those partying and committing federal crimes days are history with the new team in place.

Or so we thought…

A new group of execs were brought in today. And among them are the cofounders of music startup iLike, Ali Partovi and Hadi Partovi. As usual, we peruse the MySpace profiles of new execs because every once in a while we find a new exec hire that hasn’t actually ever used the service.

All the new execs appear to have MySpace profiles. But just before I signed out of the last one i checked, Ali Partovi, a video he uploaded caught my eye. He says “Here’s a little video I just made for the MySpace sales conference next week (Oct 13-15). They told everybody, “make a video showing how MySpace is YOUR space”…..”

Anyway, meet your new SVP Business Development at MySpace, who is most definitely not buttoned up and boring. We’ve also added this video to his Crunchbase profile. Because we can never, ever let him live this down:

MySpace has just announced the appointment of four new members to its executive team, which saw a major shakeup last April. The new hires include Nada Stirratt, who will serve as Chief Revenue Officer and Dustin Finer, who is now Chief People Officer. Joining them will be iLike founders (and brothers) Ali Partovi, who is now SVP of Business Development based in San Francisco, and Hadi Partovi as SVP of Technology, based out of Seattle.

MySpace acquired streaming music service iLike in August for $20 million.

The ink isn’t even dry on the MySpace/iLike acquisition, and already Facebook has a new crush on a different music service, Spotify.

We’ve heard that Facebook has been talking with the European startup about a partnership for well over a year (about the time the Facebook music rumors heated up), but that the talks have intensified dramatically in the last week.

And just as we were digging into that rumor, up pops a Facebook status message from Mark Zuckerberg: “Spotify is so good.”

I’m a Web fanatic, I admit. But you probably already knew that… My work environment has been completely web based for years now. The same applies to my music. Like many people, I used to download music from Kazaa or eMule (Yeah, I know some of you still do). Most of the time now, I listen to music on the web and don’t have any need to download it. My laptop benefits the most from this inclination since it’s not weighed down by music files, thus saving me tons of space and virus headaches (you eMule users know what I’m talking about). Anyhow, if I do choose to download music, I can always do it over at iTunes or my favorite place in the web: Jamendo.

Music plays a large role in our lives. Since the web now plays an even bigger part, combining the two together has become unavoidable. The greatest thing about this powerful duo is that you don’t need to spend a lot of time searching for music you like — just use this nifty guide list and you’ll find just about everything you need to enjoy hours of good music. The sound quality changes from service to service, but overall, it’s good enough for regular web usage.

As expected, MySpace has confirmed that it bought iLike. It is not disclosing financial terms, but our information is that it was around $20 million.

During the conference call, Van Natta stressed the importance of music, open content distribution, and talent as the main drivers behind the deal. He also put to rest misinformed speculation that there was any delay in the deal due to tax issues or a canceled iLike board meeting. “I have been doing deals for 15 years now, and this was one of the smoother sailing deals,” says Van Natta.

Both iLike’s employees and management team will now work for MySpace, but will remain an autonomous unit based in Seattle. Throughout the conference call, Van Natta’s first, he stressed his desire to make MySpace as open as possible and he cast the iLike acquisition as complementary to MySpace in that it is a distributed application across many social networks. “People want to interact in many places. We will take that strategy and apply it across the Web,” he said. Later he reiterated, “The thrust of this is distributed web, how can we serve users in a more distributed way.”

The implication, of course, being that rival Facebook is not so open (although Mark Zuckerberg would beg to differ). Van Natta couldn’t hep but give his former employer a not-so-subtle dig: “We are a much more open network. People can explore each other interests, much more so than on other social networks.”

My full notes are below:

MySpace just sent out an advisory that it will be holding a press conference shortly at 11:45 PT.

CEO Owen Van Natta will be making an announcement (which , incidentally, will be his first public statement since taking over last April).

Could this be the official announcement that MySpace is buying iLike, the acquisition that got away from Facebook and Amazon? That’s our guess. Deal negotiations were progressing smoothly last we heard.

More details soon. We’ll be covering the announcement live.

There’s lots of speculation out there on the yet-to-be-closed MySpace acquisition of iLike that we first reported on Monday.

Much of that speculation is factually incorrect, we’ve confirmed from a source close the the deal. iLike, which has been profitable for over a year, had multiple offers to be acquired.

Our source says that, in addition to MySpace’s offer, both Facebook and Amazon submitted bona fide written offers to buy the company. At least one other large company expressed interest to Allen & Company, iLike’s advisors to the deal.

Activision Blizzard and Microsoft have been incorrectly rumored to have been seriously interested in the company, however.

As more details emerge about the MySpace-iLike acquisition, all sorts of interesting observations and questions pop up. A few thoughts:

The Facebook Angle

This is by far the most interesting angle to the deal. iLike is the most popular music application on Facebook, and is the de facto Facebook Music app. That company will shortly be owned by MySpace, Facebook’s primary competitor. That puts Facebook in a lose-lose situation. They can let iLike continue to dominate the music scene on Facebook and let MySpace own all that. Or they can ban iLike and lose all credibility with their platform – everyone would know iLike was banned because of the acquisition by MySpace. And it doesn’t have to be an outright ban. Facebook has plenty of subtle ways of trainwrecking an application they don’t like. Keep an eye on this.

Why didn’t Facebook just buy iLike? A matching or slightly better offer than the $20 million MySpace is paying would likely have gotten the deal done. And it may have saved Facebook from an embarrassing situation.

If I were MySpace, I’d focus on getting their free streaming music into the iLike Facebook application as soon as possible. Advertisers will love it.

MySpace is close to acquiring popular social music service iLike, we’ve confirmed with multiple sources. The deal, which should close this week, will be MySpace’s first acquisition since new CEO Owen Van Natta took control of the company in April 2009. The price is “around $20 million.”

iLike, which launched in late 2006, is a social music recommendation service that now has more than 50 million registered users. It tracks what you listen to and like and gives you recommendations on new music based on that data as well as what your friends are listening to. It is the top music application on Facebook, Bebo, Hi5 and just about every other social network other than MySpace, which has MySpace Music.

Popular music recommendation service iLike launched a music download service this afternoon, offering users MP3 downloads for $0.89 to $1.29 per song. Previously the service only offered users the ability to sample 30 second clips of songs, or restricted full streaming via a partnership with Rhapsody (now phased out).

iLike says the first song purchased today was Get Away, Jordan by Ernie Haase & Signature Sound. Music is available from all four major labels and “hundreds of indie labels, enabled via MediaNet.”

Rumors of the music store were first reported by CNET’s Greg Sandoval last month. Until now iLike has offered downloads from Amazon and iTunes. Those options remain.

The service is rolling out now on iLike (I was able to purchase a song), and should be available to all U.S. users by end of day, says iLike. iLike applications on iGoogle, Facebook, Bebo and other platforms will also be available “soon” says the company for U.S. users.

In an email exchange, iLike CEO Ali Partovi said:

iLike is launching a new iPhone application today that takes advantage of the iPhone 3.0 update’s new features in some of the best ways that we’ve seen yet. Dubbed “Local Concerts”, the application lets you follow any artist you’d like and receive alerts whenever they announce that they’re coming to a local venue. For anyone who has ever tried to keep tabs on their local music scene, this is going to be a must-have. You can grab the free app here.

Using the app is pretty straightforward: it allows you to view all venues in your area, with concert listings for events that are going on in the near future or further down the line. But it also includes a number of nifty features that the iPhone didn’t previously support. One of these is automated personalization — the application can look at your iPhone or iPod Touch’s library, and determine which artists you should probably be following (though you’re free to adjust the list on your own). Once you’ve found a concert you’d like to attend, the app includes links to sites where you can purchase tickets. Whenever you’ve got an alert, you’ll see a message pop up on your iPhone (much like an SMS message would) regardless of if you have the application open.

We’ve confirmed from multiple sources that San Francisco/Seattle based music service iLike, which has been profitable since 2008, is raising new capital in an unusual transaction designed to push out Ticketmaster, an investor since 2006.

The company has raised a total of $16.5 million from the founders, Scott Banister, Bob Pittman, Vinod Khosla and Ticketmaster to date. But their last round of funding was in 2006, where Ticketmaster put the bulk of the capital in via a third round of financing that valued the company at a whopping $53.2 million.

iLike, the popular music discovery site with a huge presence on social networks, is launching a set of new syndication services for musicians. Beginning tonight, iLike now offers extensive integration with Twitter, Facebook, MySpace, and YouTube, allowing artists to distribute content to each of their online presences from a single control panel. In addition to these, the company is also launching a new self-serve platform for building customized iPhone applications for artists, allowing them to establish themselves on the App Store with a minimum amount of effort and resources.

While most readers probably associate iLike with music playlists and streaming, the service is also home to 300,000 artists who use its services to help manage and distrbute their content. Before today’s annoucement, the service offered more limited syndication options, allowing them send data through the iLike Facebook application, its iGoogle widget, and an iTunes plugin. But the new options go much further.

Today, iLike released a social playlist app that lets you create a music playlsit and embed it on any Website. Then through Friend Connect, anyone can sign in and change or add to the playlist. I’ve embedded one below seeded with five songs that I’ve called TechCrunch House Party. Go ahead and add to it, but only good songs, please. Or create your own.

Facebook’s ongoing effort to launch a free streaming music service is stalled, according to multiple sources familiar with the situation. The company was close to a deal that would bring free streaming music from three of the four big labels (Universal, Sony, EMI) through the Total Music joint venture. But the deal stalled when the lone holdout, Warner Music, refused to participate.

Through most of 2008 Facebook said on and off record that they had no real interest in their own music application and that third parties like iLike could continue to build their Facebook music applications without fear of competition directly from Facebook.

News leaked in the Fall, though, that Facebook had approached a number of third parties to power the official Facebook music application:

MOG demo’d the next version of their popular music service to me today, and I was impressed. It combines a best of breed interface with free on demand streaming and a Pandora-like music recommendation engine. The trouble is, it may never launch because only two of the four major music labels are supporting it so far.

MOG has a history of doing cool new things around music. The service today includes a media player plugin that records and analyzes your music habits, a website that has a dedicated page for every artist, album and song with user generated reviews and posts, and an advertising network that provides revenue for 300 top music blogs. Users can also stream music via an excellent front end to Rhapsody.

All of that brings about 5 million unique visitors a month to their network, and the company says they should bring in about $5 million in revenue in 2009.