News Corp reportedly approached Vevo.com with an offer to buy MySpace outright just weeks ago, but Vevo was not interested. Now, Reuters cites sources in reporting that News Corp is discussing exchanging MySpace for a stake in a new venture.
Possibly the most valueable asset of MySpace is MySpace Music, a collaboration with Universal, Sony Music Entertainment, Warner Music Group and EMI Music. Vevo is a joint venture owned by Abu Dhabi Media Co., Universal and Sony Music.
Reuters source indicates that the chances of something coming out of these talks for News Corp. is "very slim." MySpace has been bleeding users at an accelerating rate, and an attempt to relaunch it as a social entertainment hub seems to have mostly failed in its goals.
Web analyst comScore reported last week that MySpace lost about 10 million users in a single month. Specifically, it reports 63 million users of MySpace in February this year, down from 73 million just a month before.
Written by: James Delahunty @ 29 Mar 2011 17:37