MySpace set to be sold for less than $30 million?
MySpace appears set to be sold this week as News Corp aims to get rid of the unprofitable social networking site before the end of the month, which is also the end of the company's fiscal year. The desperation to sell in such short order has also resulted in the site being offered at a rock bottom price: likely somewhere between $20 and $30 million.
That valuation is far from what the company had hoped to get -- about $100 million -- and pocket change compared to the $500 million News Corp dished out for the site when it purchased MySpace in 2006.
Hardest hit could be the employees of the site, as it is thought as much as half of the staff could be cut. Additionally, it is believed that News Corp plans to still retain a small minority stake regardless of the buyer.
While MySpace had originally been thought to end up in the hands of an investor group, AllThingsD reports that issues with the deal have opened it up to two lesser known suitors, Specific Media and Golden Gate Capital.
Both companies are said to be leaning toward continuing MySpace's current push into music and entertainment, although it is not clear if News Corp and MySpace's current licenses would transfer over to the new owners.
Specific Media is a large advertising network, and Golden Gate Capital is an investment firm which works with troubled companies. The MySpace buy would be the first time Golden Gate Capital will have attempted to fix a consumer Internet brand.