While Murdoch's In a Mood to Deal...

MySpace Founders Tom Anderson and Chris DeWolfe are demanding a two-year $50 million contract extension from News Corp. honcho Rupert Murdoch, according to Hollywood blogger Nikki Finke.

But Finke, who used to work for the Murdoch's New York Post, doesn't think the pair are likely to see such a payout.

MySpace has been central to News Corp.'s web strategy. But, Finke notes, "no one has obviously told DeWolfe or Anderson that News Corp. is also one of the cheapest companies on earth when it comes to executive compensation." The pair are also seeking a $15 million fund to invest in web startups.

Finke quotes News Corp. "insiders" as saying the likelihood of DeWolfe and Anderson getting the payout is "slim to none" and "highly unlikely."

News Corp has countered with an offer of $15 million each over 2 years, Finke reports, which would make the pair better compensated than every other exec at sprawling News Corp. except Fox News overlord Roger Ailes.

DeWolfe and Anderson's hefty demand, coupled with the rapid ascent of upmarket social networking upstart Facebook, may explain why Murdoch has cooled on MySpace, according to Nick Denton at Valleywag.

The news baron is reported to have been in talks to trade MySpace -- which he bought for $630 million -- for a 25 percent stake in Yahoo, which would be valued at about $12 billion.

Given how closely associated Anderson and DeWolfe are with MySpace's success -- and Murdoch's financial interest in the continued growth of the social network -- Denton believes the pair will reach an "accommodation" with Murdoch.

"Let's be real," writes Denton. "The MySpace acquisition is the deal that put Murdoch back on the cover of the business magazines, looking dynamic for a 76-year-old. He can't afford to quibble too much."

by Sam Gustin