MySpace- a Place for Labels?

It looks like Tom just got himself some new powerful friends, or is it the other way around? The company that was launched as a refuge for independent artists who aspired to showcase their music to major labels is now part of the majors,

In a news release from Warner Music Group it is stated that WMG along with Sony BMG and Universal have brokered a deal with Myspace to provide a platform for all musicians to sell music. The new entity will be called Myspace Music.

Imagine that, after A&R's have been trying to get executives to understand the cyber and digital trend some people finally got it. What a smart guy that Tom is, right? Well sort of.

Actually Myspace is operated by none other then Rupert Murdoch. Yes, the media tycoon who dominates the world with his Fox Media Networks is behind Myspace.

Murdoch's company, News Corporation (NWS) owns 20th Century Fox, The New York Post, The Sun and various satellites and media through out the world.

To simplify things Murdoch basically owns whatever his rival Ted Turner doesn't.

As his daughter Elizabeth is ironically getting coverage for hosting an upcoming fund-raiser for Barack Obama in her London home, the ultra-conservative Murdoch is securing deals with label owners.

This is a very intelligent and strategic move for the tycoon whom Turner simply refers to as a "warmonger."

Murdoch has always denied this claim. His New York Post surprisingly endorsed Hillary Clinton this year.

Ted Turner was Vice Chair of Time Warner and has interest in the company. Time Warner was partnered up with his Turner Broadcasting empire.

Under his leadership the company took advantage of the growing cyber industry by purchasing stakes in Google. Murdoch acquired Myspace instead.

Buying the virtual planet for 580 million dollars was another insightful move considering that brokers now value the company at 6 billion dollars.

As the music business continues to spiral downwards it just might be the place for friends that could keep the industry from sinking.