News Corp mulls sale, spinout of MySpace
San Francisco: News Corp is exploring strategic options for its MySpace website including a sale or a spinout, the company said, a day after the former social networking high-flyer slashed nearly half of its staff.
News Corp, which paid $580 million for MySpace in 2005, believes a spinout would be the most logical route, a source familiar with the matter said. That option would likely entail someone from the venture capital or the private equity community investing in MySpace, thereby altering the current ownership structure, the person said.
The company launched a new version of the site in October centered on music, movies and entertainment for the 35-year-old-and-under crowd.
At an all-staff meeting, MySpace CEO Mike Jones announced that parent-company News Corp was exploring strategic options for the site, News Corp spokeswoman Julie Henderson confirmed. The news was first reported by Bloomberg.
"We are looking at a number of strategic options for the business, including a sale, merger or spinout," said Henderson. News Corp Chief Operating Officer Chase Carey had said in November that the company was exploring all options for MySpace, including a sale, and told investors that month that MySpace had quarters rather than years to turn itself around.
Once the top Internet social networking site, MySpace has been eclipsed in recent years by Facebook, which now counts more than 500 million users and was recently valued at $50 billion.
On Tuesday, MySpace announced that it was laying off 47 percent of its staff, or about 500 employees.
Download the all new Zee News app for Android and iOS to stay up to date with latest headlines and news stories in Politics, Entertainment, Sports, Technology, Business and much more from India and around the world.
More from India
More from World
More from Sports
More from Entertaiment
- Helicopter ferrying 6 pilgrims, woman pilot crashes near Katra
- Growing sense of despondency in India from last 6-8 months: Aamir Khan
- 8th Ramnath Goenka Awards: Sudhir Chaudhary awarded for Excellence in Journalism
- Tejashwi Yadav takes charge as Deputy CM of Bihar
- Arvind Kejriwal clarifies his friendly gesture with Lalu Prasad Yadav
- Know how much sex is enough for happiness
- Swaragini: Ragini gets caught in her own trap; Swara slaps her
- Rahul's mails nail Peter Mukerjea's involvement in Sheena Bora murder case?
- Karnataka, Madhya Pradesh bypoll results: As it happened on November 24
- Lesson for jihadi aspirants? ISIS says Indians not good enough as 6 out of 23 fighters from India are killed