Following the news earlier this year that News Corporation cut half of MySpace's staff, Rupert Murdoch's media company is now looking to give control of the online social network to music video streaming site Vevo.com
Both MySpace and Vevo.com – which is currently only viewable in the US and Canada – have so far officially declined to comment on the deal.
Vevo.com is a joint venture, owned by Universal Music, Sony Music and Abu Dhabi Media Co.
Deal still some way off
A Reuters source has said that there is still little likelihood of a deal being reached in the near future, while confirming that MySpace has been in talks with Vevo about the future of the ailing social network.
The source added that talks had been ongoing between the two companies since February this year, with News Corp using investment bank Allen & Co to help with negotiations over the future of MySpace.
News Corp first asked Vevo if it was interested in buying all of MySpace's assets, but it now looks like the two companies are considering some form of joint venture.
News Corp hopes to reach a deal on MySpace before the end of the company's financial year in June, so we expect to hear more news on plans for the future of the once-popular social network over the coming months.
News Corp originally obtained MySpace for $580m (£363m), yet is reportedly happy to offload it for a minimum of $100m.
Vevo is set to launch in the UK at some point in April.