MySpace.com set to launch their Chinese venture

China is the second largest internet market in the world and happens to be one of the target markets for MySpace.com.

Market sources claim that the Myspace.com parent News Corp. is finalizing a deal with partners to launch this service in the Chinese market.

One of these partners includes the private equity heavyweight IDG. News Corp. could be taking less than 50 percent of the venture as they plan to become a large player in the social networking market in China.

However, they would have to negotiate with China’s strict regulation of media content. In addition, the company would also have to provide tighter control over the user generated content.

Liu Bin, principal analyst at Beijing-based research firm BDA spoke about this new development: “It’s hard for a foreign online service provider to get an Internet content license and other news licenses. If MySpace forms a JV in which it takes a minor share, the company can still be looked at as a domestic company.”