Microsoft’s online division MSN is in talks with MySpace over a potential deal to use MySpace Music as its music provider, according to All Things Digital. The talks, described by both sides as “early”, could lead to a deal similar to that MSN has with Fox Sports, which runs its sports website. An MSN deal would certainly be a big traffic boost for MySpace Music, although the resulting increase in streams would have to be paid for in licensing terms – how those payments would be shared between the two remains to be seen.

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