News Corp to sell MySpace- half of staff to go?

30/06/2011

News Corp. is on the verge of selling Myspace and a deal could include laying off more than half of the troubled social network's staff, according to a news report. The Wall Street Journal quoted a "person familiar with the matter," saying that there were two leading bidders for Myspace; digital ad-targeting firm Specific Media and private equity firm Golden Gate Capital.

The News Corp.-owned Journal said a deal would include shedding more than half of Myspace's staff of about 500 people. The WSJ said the buyer would pay significantly less than the $100 million News Corp. had hoped and the Rupert Murdoch-owned company would retain a small stake in Myspace.

30/06/2011


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Meanwhile. technology blog All Things Digital, owned by News Corp., said the price for Myspace was in the $20 million to $30 million range.

News Corp. paid $580 million for Myspace in 2005. It was the leading social network at the time but has since been eclipsed by Facebook.

The Journal said Specific Media and Golden Gate Capital were the leading bidders but several otherrs remain in the mix, including two groups involving Myspace founders Chris DeWolfe and Tom Anderson.

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