News Corp in talks with Vevo.com on Myspace: report

Reuters News
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Posted: Mar 28, 2011 8:46 PM

NEW YORK (Reuters) - News Corp is in preliminary talks to give control of Myspace to the music label video site Vevo.com, Bloomberg reported on Monday, citing three people with knowledge of the situation.

News Corp in February kicked off the process to explore the sale or spin-off of its troubled social entertainment site, a person familiar with the talks told Reuters at the time.

The media conglomerate 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.

In its talks with Vevo.com, News Corp is discussing exchanging Myspace for a stake in a new venture, Bloomberg reported, citing the people.

News Corp spokeswoman Julie Henderson declined to comment on Monday and representatives for Vevo.com did not immediately respond to requests for comment.

Vevo.com, launched in December 2009, is owned by Vivendi SA's Universal Music Group, Sony Corp Music Entertainment and Abu Dhabi Media Co.

(Reporting by Maria Aspan; Editing by Richard Chang)