News Corp. is looking to sell the struggling social network Myspace, previously called MySpace but now stylized as My_____, for $100 million. That's less than 20 percent of what the company originally paid for the website.
The sale is expected to draw bids from several investment firms and companies who may try to buy parts of Myspace or the whole company. The groups considering a deal for Myspace include Chinese Internet holding company Tencent, Myspace co-founder Chris DeWolfe, private equity firm Thomas H. Lee Partners, Redscout Ventures, and Criterion Capital Partners LLC, owner of social networking site Bebo, according to people familiar with the matter, cited by The Wall Street Journal. Last month, there was talk that Myspace would be sold to Vevo, the online music website partly owned by the world's biggest record companies. It now looks like Vevo is no longer as interested.
Over the past few years, Myspace has been on a steady decline in terms of revenue, mindshare, and traffic. It's even considered one of the slowest social networks. It seems as Facebook grows, Myspace continues to falter. This is despite a recent redesign, a new mobile site, and even a desperate attempt to cling to Facebook for help.
News Corp. bought Myspace for $580 million in 2005. Initially, the deal paid for itself after Google inked a three-year $900 million search advertising deal the following year. Since then, Myspace has become less and less relevant as a social network and is now largely considered a failed Web property.