ADOTAS — Though it might seem silly to sign co-founder Tom Anderson to a two-year, $500,000-a-year salary for just dropping by occasionally, you might wonder if it’s to keep other talent from straying, especially if News Corp plans to sell it.
It’s no secret that Viacom missed out on buying the social network, with Rupert Murdoch swooping in. The former pairing might have worked better for MySpace, which has laid off more than 700 people both in the US and internationally in the past month. With MTV, MySpace could leverage its solid advantage over Facebook: music.
But what will it take? According to Breaking Views, Viacom might be able to buy MySpace for about $1 billion. With the social network’s lucrative deal with Google, $300 million a year, ending next year, and experts saying that they doubt it can grow revenue substantially after the deal expires, it makes sense for Viacom to make up for its mistake.
Except that Summer Redstone is getting killed in the stock market, already having sold blocs to stave off bleeding elsewhere, and there is even talk of spinning off Paramount, and MTV just laid off 75 people.
While it makes sense, especially for MySpace, you wonder what other music-oriented partnerships are out there.
[Credit: Edward Barrera / Adotas]
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