News Corporation (NYSE:NWS) is a prime example of how traditional media companies can leverage New Media. The formula is: buy a hot Internet property. And then leave it alone. Allow it to keep growing.

It has been magical for MySpace, which is the most trafficked site on the Web. And, despite intense competition, MySpace is still dominant.

So, an analyst at RBC, Jordan Rohan, looked into the following: What is MySpace really worth?

Well, valuation is not really a science – especially when trying to figure what a company is worth when it is a part of a large, sprawling organization.

But, there are some tried-and-true techniques that help. In fact, one approach is known as comparable valuation. It's basically what appraisers use to value houses. That is, the value of a house is probably related to similar houses that have sold recently.

Rohan took the same approach with MySpace.

He looked at some of the investments and purchase offers for other popular sites like YouTube and FaceBook, which is rumored to by buyout bait for Yahoo. He also factored in the valuation of Google, which is over $120 billion.

The analyst also looked at the various possible ways MySpace can monetize its huge user base. This can be done with direct response marketing, ecommerce and high-price advertising.

Oh, and MySpace can find growth overseas. And, there is the growth from mobile (after all, there are more mobile phones than PCs).

Taking all this in, his conclusion is that the value of MySpace could be between $10 billion to $20 billion over the next few years.

True, this is a wide variance; and is to be expected in a dynamic industry.

But, there is little doubt, at least for now, that News Corp. hit a grand slam with its $580 million purchase of MySpace.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.