News Corp And Vevo In MySpace Talks
Reuters reported that News Corp has held talks to give control of MySpace to video site Vevo.com, but the likelihood of a deal going through is slim.
According to the report, News Corp kicked off the process in February to explore the sale or spin-off of its troubled social entertainment site.
Reuters said, citing a person familiar with the talks, that News Corp has tapped boutique investment bank Allen & Co to aid with the process, and as of February had already received early interest from around 20 parties.
The person said that News Corp is discussing exchanging MySpace for a stake in a new venture.
Reuters reports that representatives for News Corp initially contacted Vevo to see if they would be interested in purchasing all of MySpace a few weeks ago but were rebuffed.
A joint venture has been proposed which could see News Corp spin off its stake in some sort of joint venture.
Vevo is a joint venture owned by Universal Music, Sony Music and the Abu Dhabi Media Company. It has 60 million users in the U.S. and Canada and is launching in the U.K. in April.
MySpace Music is likely to play a key role if the deal goes through. This portion of the social network is a joint venture between Vivendi’s Universal Music Group, Sony Music Entertainment, Warner Music and EMI.
News Corp acquired MySpace for $580 million in 2005, but analysts say that the company has not achieved a higher valuation since then.
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