The rumors that MySpace is acquiring music streaming service iMeem for a bargain-basement price have gotten some more weight behind them and a deal looks pretty much certain at this point. The deal doesn’t paint a pretty picture for the music streaming business and it remains to be seen if MySpace has better luck with the teams of talented people it has been amassing

lately. In any case, it now looks like MySpace will pay just $1 million in cash, though on the whole, the deal is worth at about $8 million plus considerable earnouts for the employees that stay with MySpace.

There still isn’t anything official from any of the companies, but multiple sources confirm that the two sides have reached an agreement and that the negotiations are over for now. It isn’t exactly a done deal yet, but it’s very close to it. MySpace won’t completely assimilate iMeem – the company – but the social network turned media hub will get its hands on most of iMeem’s assets.

Some assets along with the good chunk of the money involved in the deal will be used to pay off some of iMeem’s debt which amounts to as much as $10 million. MySpace will also lose the licensing deals iMeem has signed with music labels as they become void as soon as the company changes hands. What the social network will be getting, though, is the service itself, the intellectual property and about half of the company’s 55 or so employees, both in the engineering and in the sales departments.

It’s unclear at the moment if the service lives on, but even if it does, it’s safe to say that iMeem as a company has failed big time thanks in large part to outrageous license fees from the music labels. News of the deal might raise interest from other parties and someone might make a better offer for the company. However, seeing as how iMeem has gotten as much as $75 million from investors and loans any sort of exit at around the sum currently speculated is a huge disappointment.