News Corp. wants to sell Myspace, possibly to Vevo

By on March 29, 2011, 8:00 AM
It has been speculated that News Corp. wants to get rid of Myspace, previously called MySpace but now stylized as My_____, and now it looks like a sale is in order. News Corp. has reportedly hired investment bank Allen & Co. to evaluate offers for the social network. The parent company is seeking responses in the next several weeks and wants a deal before the fiscal year ends in June.

Myspace could be sold to Vevo, the online music website partly owned by the world's biggest record companies, according to three people with knowledge of the situation cited by Bloomberg. Unsurprisingly, News Corp. and Vevo are declining to comment.

That being said, nothing is final yet: the talks are preliminary and an agreement may not be reached. Under the scenario being discussed, News Corp. would exchange the Myspace social network for a stake in a new venture. Vevo is one of several parties looking at Myspace, though the other ones have not been disclosed.

Vevo, which offers advertising-supported music videos and which you've likely seen on YouTube, could draw on Myspace music assets, including artist and fan pages. Vevo is owned by Sony Music Entertainment, Universal Music Group, and Abu Dhabi Media with EMI licensing its content to the group without taking an ownership stake. The site went live on December 8, 2009, and that same month became the number one most visited music site in the US, overtaking MySpace Music, which also has investments from Sony Music Entertainment and Universal Music.

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