Exfm had an interesting take on music discovery based on scanning blogs for MP3s that could be imported into a cloud-based player. Things seemed to be going fine as the company launched apps, plugins, and an API. Then it abruptly shut down in January. The company has hinted in the interim that something was going to happen, and now we know what's up—Exfm is being bought by Rhapsody.

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The announcement post is light on details, but it sounds like Exfm is going to continue existing as a separate product. The team will be working over the next few months to build new tools and experiences for Android (as well as those other mobile platforms). Some sort of integration with Rhapsody's subscription music service is probably in the cards as well. 

So Exfm isn't dead, but the service that emerges in a few months might be quite different from the one we had before. We'll keep an eye on it.

[Exfm Blog]