Report: Investment Plan for Myspace Music On Back-Burner
October 17, 2008 at 5:58 AM (PT)
Potential plans by NEWS CORPORATION to bring in private-equity investments in MYSPACE MUSIC have been put on the back-burner, writes THE NEW YORK TIMES, based on a PAIDCONTENT.COM report.
Earlier this year, MYSPACE announced that it would turn its popular MYSPACE MUSIC site into a joint venture, bringing in UNIVERSAL MUSIC GROUP, SONY BMG MUSIC ENTERTAINMENT and WARNER MUSIC GROUP as minority owners. Since then, NEWS CORP. has reportedly been mulling a move to bring in private equity investors, like it did for HULU, a joint venture between NEWS CORP. and NBC UNIVERSAL, which got a $100 million investment from PROVIDENCE EQUITY PARTNERS.
However, the company has decided that it doesn’t need the outside capital and that bringing in a third-party investor, could make the structure of the joint venture too complicated, PAIDCONTENT said.
"They didn’t even shop it that hard," a private-equity source told the publication.