Vevo Reportedly Approached To Buy MySpace
March 29, 2011 at 4:44 AM (PT)
The once-upon-a-time king of social networking, MYSPACE, has reportedly approached VEVO about buying the company. MYSPACE parent company NEWS CORP announced earlier this year that it was ready to sell MYSPACE, which it purchased in 2005 for $580 million.
MUSICWEEK quotes a REUTERS report that "NEWS CORP is in talks with VEVO -- which is a joint venture between UNIVERSAL MUSIC GROUP, SONY MUSIC ENTERTAINMENT and ABU DHABI MEDIA COMPANY -- with a view to reaching a deal. It is claimed that a few weeks ago, NEWS CORP. approached VEVO about buying MYSPACE but was turned down. One possible way the negotiations could now move is that MYSPACE is handed over to VEVO in exchange for NEWS CORP taking a stake in the video service."
MYSPACE "re-launched" at the end of 2010, but has continued to struggle in a FACEBOOK-dominated world. Figures from COMSCORE show global traffic to MYSPACE slid from 73 million to 63 million between JANUARY and FEBRUARY 2011.