Los Angeles - News Corp.'s MySpace is reassessing the private equity elements of its new MySpace Music joint venture with the major record labels, which may be seen by the company as too complicated and not necessary in the end, PaidContent reported, citing sources familiar with the situation.

The service gained traction quickly in its first week, served a reported 1 billion song streams to users.

The question now is whether News Corp. would want to take on further outside equity partners, which would require a formal spin-off of MySpace Music as a separate company, and necessitate the signing of new licensing agreements.

"We're pretty happy with the way things have been working to get us to this launch; the idea we have to do things completely separately doesn't seem to be as relevant," one source told PaidContent.

MySpace Music currently operates as a joint venture with record labels, but remains a unit within the company.

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