News Corp. in Talks to Hand MySpace Control to Vevo (Report)

The media giant is said to have approached the music Website about exchanging the social network for a stake in a new venture.

News Corp. is in talks to give control of MySpace to music Website Vevo.com, Bloomberg reported, citing sources.

The media giant is said to have approached the site, which is partly owned by several major record labels, about exchanging the social network for a stake in a new venture. Bloomberg's sources stressed that the talks are preliminary and that Vevo is one of several parties looking at MySpace.

New York-based investment bank Allen & Co. has been hired by News Corp. to evaluate offers.

Vevo, which launched in December 2009, is owned by Vivendi SA's Universal Music Group, Sony Music Entertainment and Abu Dhabi Media Co. Sony and Universal also are investors in Myspace Music.

Reps for News Corp. and Vevo declined to comment to Bloomberg.

MySpace saw its global traffic shrink 29% to 62.6 million visitors in February from 88 million in October 2010, when News Corp. redesigned the site and gave it a new entertainment focus, according to ComScore figures cited by Bloomberg. 

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