News Corp. may have found a suitor on which to unload its ailing social network. Bloomberg reports that the company is in talks with Vevo.com to exchange Myspace for a "stake in a new venture." Vevo is the fifth biggest video site in the U.S. with 45.9 million visitors and is controlled by some of the biggest record labels, including Universal Music Group and Sony Music Entertainment. The match makes sense given Myspace's new focus on entertainment, music and celebrity fan pages following its redesign last October. Vevo, which relies on advertising-supported music videos, could leverage Myspace's popular musician fan pages.
News of an attractive buyer couldn't have come sooner for News Corp. The company has been trying to unload Myspace for at least a year now and the longer it holds the social network, the worse things get. Myspace's global traffic has shrunk 29 percent to 62.6 million since October of 2010, according to ComScore. And a report yesterday shows that its ad sales have dropped 39 percent to $273.8 million with an operating loss of $156 million for the quarter ending Dec. 31.
"Their fall from relevance has been so significant, that advertising on Myspace just doesn't make sense to us," said a senior executive of the hotel chain Hilton Worldwide to the Journal. Scott Kelley, a marketing manager at Ford, agrees. "They have gone dormant over the past two years with advertisers," he said. "They literally left town."