Friday, January 14, 2011

News Corp. Considering MySpace Sale

It's not a good week to be a MySpace employee. Just a day after it was announced that MySpace would lay off nearly half its staff, News Corp. admitted it's considering selling the site.

"News Corp is assessing a number of possibilities including a sale, a merger, and a spinout," Rosabel Tao, a spokesperson for Myspace, told Bloomberg. "The process has just started."

Chief executive Mike Jones delivered the news to employees on Wednesday at a company-wide meeting about MySpace's future.

On Tuesday, the former social-networking behemoth announced it would cut its staff by 47 percent. News Corp. famously bought MySpace in 2005 for $580 million, but it hasn't exactly been a cash cow for the media company. In the last quarter, the segment of News Corp. that owns MySpace lost $156 million. The layoffs, which affect about 500 people, were expected, however, especially as executives had called the losses "not acceptable" in November.
 
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