DANCING NEBULA

DANCING NEBULA
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Tuesday, June 28, 2011

News Corp. finalizing $30M sale of Myspace

News Corp. finalizing $30M sale of Myspace

Posted:
 28 Jun 2011 09:21 AM PDT

Myspace
Myspace’s parent company News Corp. is in the final stages of selling the under-performing social network for $20 – $30 million, reports All Things Digital.

News Corp. is apparently in a rush to complete an acquisition deal by Thursday — its fiscal year-end. The media giant probably doesn’t want MySpace to blemish its 2012 financial records, especially given the lackluster revenue predictions.

Backing up earlier information, the report indicates that significant cuts in staff and operating costs will be made to Myspace depending on who the buyer is. News Corp. might also retain a small minority stake in the company, according to the report.

Specific Media and Golden Gate Capital are at the top of the list of companies that could acquire Myspace. Both companies would focus Myspace on music, sources told All Things Digital. However, it’s unclear if prior music licenses will transfer with the sale.

An investment group that includes Myspace co-founder Tom Anderson, another separate investment group that includes Myspace co-founder Chris DeWolfe andCriterion Capital Partners have also been rumored as showing interest in purchasing the company, according to the report.

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