Streaming music company imeem has hired boutique investment bank Montgomery and Co. to help it sell, and it has laid off 25 percent of its 80 person staff, PaidContent is reporting. San Francisco-based imeem has confirmed that it has cut 20 positions but isn’t commenting on any potential sale plans.

The company says it has 25 million monthly active users on its home site, imeem.com, and around 85 million more on its widgets that run on MySpace, other social networks, and web sites. It launched a promising application for the new Android mobile platform earlier this week; it is also one of the companies that Facebook has approached about a potential music partnership, as we covered earlier today. Imeem recently relaunched its home site to include more social features, and has started offering branded sponsorships to advertisers.

The company has raised a total of $50 million from venture firms including Sequoia Capital, Morgenthaler Ventures, DAG Ventures and as well as record label Warner Music Group, according to PaidContent, with the latest round valuing the company at more than $200 million. We’ve previously heard conflicting reports about how much the company has raised, so this information may be subject to to further updates.