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