News Corp Selling MySpace Soon

June 28th, 2011 by invasive · No Comments · fail

Myspace - Doin it Rong

This Reuters article says that, according to a source, News Corp is close to selling MySpace soon. And the selling price will be a mere fraction of what they paid for it.

As the auction of the troubled MySpace.com site continues, 2 companies have emerged as possible buyers. One is Specific Media, an online advertising company. The other is Golden Gate Capital, a private equity firm. Nether companies are willing to comment about it.

The unnamed source says:

  • The deal will probably be a mix of cash and stock for less than $100 million
  • More than 50% of MySpace’s workforce (500 of them) will be laid off due to the sale
  • The deal should be complete in a few days time

Rupert Murdoch’s News Corp bought MySpace in 2005 for $580 million. As you all know, MySpace got its ass handed to it by Mark Zuckerberg’s Facebook. In 2010, News Corp tried to relaunch MySpace as a “social entertainment site with a focus on music, movies and celebrities.” Because, you know, we don’t have enough social entertainment sites with a focus on music, movies, and celebrities. So I’m glad they were able to fill that niche. Oh, they also changed their logo to a version which removes the word “Space” and replaces it with a little “space” bar symbol.

MySpace Logo

How cute! Now you can fill in the blank: My_Crap, My_Loss, My_Fail, etc… Use your imagination!

I also find it interesting that there’s a nice “Connect With Facebook” button on MySpace’s main page. Talk about defeat with a capital D.

Speaking of Facebook, there’s a related story on Reuters concerning the investment fund called GSV Capital Corp. It seems that GSV Capital has taken a small stake in Facebook – about 225,000 shares, at an average price of $29.28 each.

Facebook is almost sure to go public. Observing the IPO is certain to be lots of fun.

And how much is Facebook currently valued at? Would you believe.. $70 billion ?

Yeah, and anybody who believes that Facebook isn’t a massive bubble waiting to pop hasn’t learned a damn thing from MySpace.

“Here today, gone tomorrow.” A constant in the universe of the Internets. If you don’t believe me, go ask Friendster and pets.com.

- Bill

Update

MySpace has gone to Specific Media. For $35 million, according to news reports. How the mighty have fallen!

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