News Corp. wants to sell Myspace for $100 million

By on April 30, 2011, 11:12 AM
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.

User Comments: 9

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gobbybobby said:

nobodys gonna want Myspace, Although it is still used alot it is losing numbers to facebook. Everyone has facebook, and the people that don't are pretty much isolated, Well within my group of freinds and family anyway. I don't want to have a Facebook and myspace account there is only 1 spot for social network in the world market.

Guest said:

I will give them a fiver for it.....


I could buy some steak for a fiver, at least that would be useful.... and tasty....

Yeah, ill buy a steak instead.....

Trillionsin Trillionsin said:

Steak sounds good... My Steak.

stewi0001 stewi0001 said:

pay me and maybe then I'll take myspace. I wonder if Tom is still on myspace? XD Anyways I quit using myspace long ago because there was too many fake accounts that would spam my account. What ever ends up happening to myspace, I say good ridden!

Guest said:

Let it had its day..but now its just Wastedspace

example1013 said:

MySpace is like Facebook's seedy, back-alley cousin.

Wendig0 Wendig0, TechSpot Paladin, said:

People still use Myspace? Kill it with fire!

Xclusiveitalian Xclusiveitalian said:

Facebook should buy Myspace and destroy it

yRaz yRaz said:

Myspace is the illegitimate child that the internet rejected. Facebook is like the little brother who is more successful than the older brother because he learned from older bro's mistakes. Only thing that myspace is good for now is music. Even then, is there any good music now-a-days?

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