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MySpace in talks to become Facebook friend

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Facebook is in talks with MySpace to assimilate some of its content, in what would mark a formal admission of defeat for the Murdoch-owned site.

The proposed deal, mostly significant as an acknowledgement of Facebook's seniority, would see MySpace effectively supply videos and music and allow users to log in via the Facebook Connect API.

Facebook's operations chief Sheryl Sandberg's statement on the talks demonstrated how far MySpace has fallen from competing for the top social networking spot to acting as a third party media host.

"We would like to have their content, as we already do with many other sites, shared across our network because it is good for our users," she told The Telegraph.

Facebook has about three times MySpace's user base following aggressive international expansion. It now frequently claims it is "cash flow positive", which is not a defined accounting term and as such doesn't really mean anything at all.

MySpace is meanwhile trying to reposition itself as a video and music-focused site. ®

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