MySpace seeking additional pre-launch funding

Plans for music streaming service leaked

MySpace is in the process of engineering a comeback with a music streaming service and is reportedly looking for investment money to get back on track

The once-great social network is planning a re-launch in 2013 that will capitalise on its musical user base by offering a streaming service aimed at taking on the likes of Spotify.

MySpace changed ownership last year when Specific Media LLC picked up the dying company from Rupert Murdoch's News Corporation for $35 million. Considering one of the investors was none other than singer-turned-actor-turned-businessman Justin Timberlake, music looked likely to figure in any plans for a ressurection.

According to a leaked slideshow presentation, Specific Media is now searching for a $50 million investment that will help it relaunch in the second quarter of next year.

So far, the numbers don't make for positive reading. MySpace lost more than $40 million this year after generating revenues of only $15 million.

However, the ace up the sleeve for Specific is clearly harnessing the five million artists associated with MySpace and launching a music-streaming service to compete with Spotify. According to one slide in the leaked document, the network has: "unique licensing agreements with all 4 major music labels, 20k independent labels and over 5M unsigned artists."

So far MySpace's major redesign has been a bit of a hit around the internet with folks responding well to the cleaner, music-focused interface.

Whether the revamped social network will be able to lure the 15 million Spotify users away from their streaming service of choice remains to be seen, but we wouldn't bet against JT bringing sexy back once again.

Source: Business Insider

$15 million this year, up from a miserable $9 million in 2011. MySpace lost more than $40 million in 2012. Interactive Media expects it to lose another $25 million next year.

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