News Corp. Considering Sale, Merger or Spinoff of MySpace

Jan 13, 2011  •  Post A Comment

 A day after cutting about half of MySpace’s workforce, News Corp. is considering a spinoff, a sale or a merger of the social-networking Website, reports Bloomberg.

Mike Jones, the chief executive of the Internet unit, told employees about the plans at a companywide meeting, the story says.

It’s a sign that News Corp. isn’t willing any longer to carry MySpace’s losses, which totaled less than $100 million in the year ended in June, the article adds.

News Corp. would help to fund the business if it decides to spin off MySpace, and employees would be eligible for shares in the new company, according to the piece. 

In what was considered a coup at the time, News Corp. bought My Space in 2005 for $580 million, when it was the No. 1 social network. It’ has since been surpassed by Facebook..

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