Former Facebook exec Owen Van Natta will take the CEO job at a music discovery site called Playlist, a move that had been speculated last week, after he did not end up taking another position as head of MySpace Music.

Van Natta’s arrival at Playlist was not the only news for the Palo Alto, Calif.-based start-up–former AOL exec Bob Pittman’s Pilot Investment Group is also investing an undisclosed amount of money in Playlist. Pittman will also join its board.

Playlist has previously raised several million dollars, said sources, but the new funding is many times that, to total about $18 to $20 million.

The move to Playlist is an interesting one for Van Natta, who has looked at a number of jobs since leaving the high-profile social-networking site earlier this year.

He has talked to a wide range of companies, sources said, including Microsoft (MSFT) and a range of start-ups, as well as with MySpace, which is owned by News Corp. (NWS). (News Corp. also owns this site).

Those talks between Van Natta and MySpace to run its new music initiative did not pan out for a variety of reasons.

But he has long expressed a desire to become a CEO of a company, rather than just head to another executive job within a larger company, so the move to run a start-up is not a surprise.

In an interview this afternoon, Van Natta told me he got very intrigued by the possibilities at Project Playlist, which was the first iteration of the start-up and in which he is an investor, due to its viral growth.

And, indeed, Playlist has grown quickly to become one of the larger music communities on the Web, claiming that more than 38 million music fans monthly, sharing playlists via its Web site and also widely distributed embeddable widgets. The site has tens of millions of daily page views, according to surveys.

To get to those big-scale numbers, Playlist essentially has offered users a giant linking service for music, not unlike Google (GOOG) with all information, pointing users to promotional, free and sometimes illegal music and music video tracks all over the Web.

Those links to illegal music have resulted in a lawsuit aimed at Playlist from the music industry, sources said, a sadly typical experience of many online music services.

The usual tactic for the music giants: Sue first and shake down later.

Under Van Natta, I would guess, Playlist is likely to reach out to music companies and strike deals.

The company also needs to settle on its main business plan, which appears to me to have been less important than its explosive growth.

Playlist currently does have some small amount of advertising on the site, and seems to be making most of its scratch from sending leads to ringtone sellers.

Van Natta did not want to reveal specific strategies for Playlist going forward, only noting the opportunity is large.

“Discovery around music is exploding on the Internet,” said Van Natta. “And the company that does the best job of taking advantage of that is really going to be huge.”

That said, there have been a lot of music-aimed efforts like Playlist in the music space, with a lot of different business plans and varying degrees of success, ranging from the Apple (AAPL) behemoth iTunes site, which sells single songs, to the CBS (CBS) music service, Last.fm, which relies more on advertising revenues.

Other contenders in the space include the Rhapsody subscription service from RealNetworks (RNWK), music discovery service iLike and many others. MySpace has also waded deeply into the music space, and Facebook is also reportedly weighing its own service.

Van Natta was one of Facebook’s earliest and most prominent execs, serving in jobs like COO and also Chief Revenue Officer while there.

He came to Facebook in the fall of 2005, after a stint as VP of Worldwide Business and Corporate Development at Amazon, and was part of the founding team of A9, the Amazon search company.

“I am excited to be building a company again,” said Van Natta, who has taken many months off since he left Facebook in February.

And let me just say after a week in the wilds of Yosemite, it’s as crowded there as in the big city, as you can read in this disturbing story from the San Francisco Chronicle this weekend on the traffic jam to reach the summit of the famous and breathtaking Half Dome. As you can see by this stunning photo by Michael Maloney, getting away from it all is a bit harder than it seems and a whole lot more dangerous (there have been a few recent and obviously fatal falls on the cables going up the last stretch of the climb).

Wimp that I thankfully am, I did not try this trek and stuck to clambering over the slippery rocks under picturesque waterfalls, even as I desperately tried to catch an errant wireless signal.

Mostly, it was to no avail, and I thank the comment on my whiny post on my journey to the land of beauty and no-digital-connection that pointed out where I could jack in.

Indeed, I did manage to sign on at the lovely and historic Ahwahnee hotel there, where my family stayed for two nights after too much dust-choked and mosquito-plagued rustic cabin camping.

But, to assuage another commenter who wished I would learn to commune with nature more and my computer less, I did have a killer view of Half Dome as I microprocessed from a very comfy chair about one foot off the ground.

Blah, blah, blah, stunning vistas.

Blah, blah, blah, majestic trees, noble beasts and all that magnificent nature.

Thank iGod I didn’t buy an iPhone yesterday, since I am going to be away a week on a purported vacation at Camp Mather near Yosemite National Park and there is no digital nothing there. (See this funny comic strip, that is entirely on point, from “The Joy of Tech.”)

Of course, everyone–including the traitor Mossberg–is acting like that is a good thing for me.

After all, I love the Web. I love it a lot. Too much.

For example:

One of my favorite vacation memories was the Thai foot massage and Internet access salons in Bangkok, followed up by my testing cellphone coverage while wading in Provincetown Harbor on Cape Cod.

And I think it relaxing to program my TiVo.

And I really and truly enjoy discussing Joost.

And I still even have my CueCat.

Most of all, my relationship with my BlackBerry is such that I actually had it clutched in my hand (OK, by accident, but that’s a long story) when I had my son.

I know: I am a freakish geek. Or is that a geekish freak?

You can get a good taste of my mania in this 1998 Wall Street Journal article “I Cut the Cord” (another digital pregnancy reference!) that I wrote about going totally wireless and my subsequent love affair with my cellphone.

In any case, there will only be one post a day next week (and none on July 4) by Associate Editor John Sullivan taking note of John Paczkowski’s Digital Daily column and video.

I will be back in action Monday, July 9, ready to annoy Yahoo and many others all through the summer–and with exciting digital side trips to Los Angeles, Seattle, Vancouver, New York, Washington, Rochester, Dublin and London.

Whew. I guess I will need that rest.