As you should remember, Rupert Murdoch’s News Corp bought out MySpace for $580 million in July 2005. It should also come as no surprise that MySpace has been struggling to survive against its competitor Facebook — which is valued at more than $65 billion.
With MySpace’s layoffs, falling traffic, and reported $156 million loss last quarter, it is no surprise that News Corp is now trying to abandon ship by selling to internet music video titan, Vevo.
Fox Business reported:
According to Bloomberg News, Rupert Murdoch’s News Corp. has approached Vevo.com, which is owned by the world’s largest record companies, about seizing control of the Myspace social network in exchange for a stake in a new venture. Talks are said to be at a preliminary stage.
News Corp., which is the parent of FOX Business, is seeking offers for Myspace over the next several weeks and hopes to reach a deal before its fiscal year ends in June, Bloomberg reported.
Vevo.com, which provides ad-supported music videos, is owned by a consortium of music companies, including Sony Music Entertainment, Vivendi’s Universal Music Group and Abu Dhabi Media.
By acquiring control of Myspace, Vevo.com could tap the social network’s music assets that include artist and fan pages.
Will Vevo snatch up a sinking business? It will be interesting to see.
Source: Fox Business