Linked completely to MySpace: The download delivery of 1 billion songs in the first week drove home something internally that seemed like a problem to some along: it’s too complicated to unwind MySpace Music from MySpace and could damage the potential for the music service to flourish. As one source put it, “you might be shooting yourself in the foot. 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.” The MySpace Music JV as currently set up with music labels as equity partners is a separate subsidiary within MySpace. Taking outside financing, which News Corp doesn’t really need at this point, would have required a separate company with new licensing agreements and a lot of other complications. One source compared it to trying to spin off Yahoo Sports: “What is it if not Yahoo?”

SEE ALSO: More MySpace Music: Raising PE Money?; Not 15th; CEO Shortlist; Advertisers

Hulu, a new operation, was much easier to set up as a completely separate JV with News Corp and NBC Universal, and then to bring in Providence Equity Partners and its $100 million investment. That created a $1 billion value for Hulu at a time when the venture needed the boost financially and in terms of being taken seriously as a standalone business. Providence was in the mix this time around, too.

Still, News Corp is keeping the option open, with a source stressing, “no decision has been made.”