MySpace was one the most popular social network on the internet, but as it failed to continue to evolve and thrive in an increasingly more “social” world. It was replaced by newcomer Facebook years ago as the most popular social network online. Facebook now has eclipsed MySpace when it comes to the number of active users on the site.
MySpace was purchased by News Corp. in 2005 for $580 million and today the social network is worth only a fraction of that amount. Now the AFP reports that News Corp. is taking offers to sell MySpace to the highest bidder. Apparently News corp. wants at least $100 million for MySpace, which is $480 million less than it paid for the site six years ago.
News Corp. is working with private equity firms to entertain offers and the offers are expected to land by the end of this week according to the Wall Street Journal.
Among the potential buyers for MySpace is a Chinese internet company. The WSJ cited sources familiar with the matter claiming that other firms considering an offer include equity firm Thomas H. Lee Partners, Redscout Ventures, and Criterion Capital Partners. Criterion Capital Partners currently owns the much smaller Bebo social network. Before making the move to sell the ailing social network, an online music site called Vevo was looking at a partnership deal with MySpace, but later backed off.
Exactly how bad off MySpace is financially is unknown. News Corp. lumps MySpace in with the "other" segment in its financial and that segment as a whole lost $156 million in Q2. It would be easy enough to assume most of that loss is attributed to MySpace, which has already cut 500 jobs this year amounting to half its staff.