<![CDATA[Gawker: valleywag, hype machine]]> http://tags.gawker.com/assets/base/img/thumbs140x140/gawker.com.png <![CDATA[Gawker: valleywag, hype machine]]> http://gawker.com/tag/valleywag/hypemachine http://gawker.com/tag/valleywag/hypemachine <![CDATA[Hype Machine, totally adorable, and this week's Cute Startup Alert]]> The Hype Machine is cool even if you aren't. The music startup seems really simple: index MP3s linked from popular music blogs and make them easy to find and listen to and brag about to people who haven't found whatever the Youngs will be sick of before they even hear it. Blame it on cofounder Taylor McKnight (pictured here at Lollapalooza, how retro!) for being so blonde and damn easy to talk to, and for designer Zoya Feldman for the gorgeous little logo. Because you can't buy cred, but you can buy cute. (Photo by Kaela Hill)

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<![CDATA[Viacom offers $10 million to buy music blog aggregator Hype Machine?]]> AnthonyVolodkin.jpgA tipster tells us Hype Machine founder Anthony Volodkin has a "$10 million Viacom offer floating around." Hype Machine, a website which aggregates music uploaded to blogs, has grown 125 percent in the last year, with 127,000 monthly visitors, according to Compete.com. Another source familiar with Volodkin's plans for Hype Machine can't confirm Viacom's offer, but said an acquisition would be the next logical step. Volodkin has been very careful to avoid taking venture capital, "despite VCs going hard after him," this second source tells us. Update: A third source says Hype Machine has been sold, but not for $10 million and not to Viacom. Whoever the buyer is, the sale rumor, if true, captures a frustrating state of affairs for technology's financiers.

Fred Wilson of Union Square Ventures once described Hype Machine as "the best thing to happen to music since the Rolling Stones!" But for a founder like Volodkin, taking nearly all of a $10 million offer must surely seem more attractive than rolling the dice by taking venture capital and trying to get a smaller slice of a larger jackpot. Some VCs have resorted to bribing founders — buying shares outright, rather than just increasing their paper wealth — to dissuade them from selling, as Automattic's investors did with Matt Mullenweg. VCs like to talk about making entrepreneurs wealthy. But they like to arrange things so they hitch a ride to the payday.

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