MySpace Could be Sold This Week for $30 Million
MySpace Could be Sold This Week for $30 Million
Posted 06/28/2011 at 2:53pm
| by Ryan Whitwam
10
Comments
Print
We might finally be nearing the end of a grueling MySpace sale. News Corp started entertaining take over bids months ago, but no one wanted to pay the $100 million asking price for the faltering social network. As with all things, the true value of MySpace may have found its equilibrium at a rumored price of $30 million. The buyer is said to be a company you’ve never heard of, and likely won’t remember tomorrow.
News Corp bought MySpace when it was thriving in 2005 for a massive $580 million. It was all downhill from there as Facebook, and even Twitter took up the mantle of the social web. Even the huge loss a $100 million sale would generate wasn’t enough to unload this property. At $30 million, News Corp may have found a friend in Specific Media or Golden Gate Capital. Rumors indicate a Thursday deal is being hammered out with one of these suitors so as to get in before the end of the fiscal year.
News Corp is expected to take the axe to their MySpace workforce yet again in preparation for the sale. Some reports have as much as 50% of the remaining staff being cut to appease the buyers. After the deal is done, we wouldn’t be surprised to see even more employees shown the door.
Both front-runners in the acquisition discussions are expected to refocus MySpace on music. Do you think MySpace has any kind of future?
More like this
10
Comments
Comments are closed on this article
bpstone
June 29, 2011 at 12:03am
For a second there I could have swore you said it was being sold for $30 instead of 30 million. lol
ShyLinuxGuy
June 28, 2011 at 8:56pm
I take it that the $30 million is mainly comprised of tangible assets (buildings, servers, etc), because the intangible assets of Myspace isn't worth anything.
DustDiesel
June 28, 2011 at 5:26pm
Notice how there is no "Login with MySpace" buttons on any of the webpages you goto. Facebook beat them down way to hard. They originally killed themselves with the one thing that was cool, fully modifyable pages with basic scripts. It died because the servers were slow and everyones page was dishing up information for all over the place. It should have been kept simple. That's how facebook was successful and so was google.
Scatter
June 29, 2011 at 5:45am
What turned me off to MySpace was clicking on a person's profile and being bombarded with music and videos.
DustDiesel
June 28, 2011 at 5:30pm
Also, the ads got so pushy and were all over the login screen. We get it, you want to make advertizing money but you didn't need it to be that pushy to gain clicks when you had all the traffic you could want. If they stripped it down to the bare bones to build back up and created a kickass mobile application for devices that utilize the music and humor aspects of the site then they may have a slow comeback. Without the cellphone sharing and posting market they are doomed.
someuid
June 28, 2011 at 4:04pm
What I wouldn't give to have the original MP3.com back. It was a great way to find new, unsigned bands and artists the big record lables wouldn't give the time of day to.
ccardarelli
June 28, 2011 at 4:00pm
Myspace is already losing out in the music sphere to bandcamp and soundcloud.
There won't be a myspace two years from now, if it even survives that long.
Connect with MaximumPC
Featured Content
The gang discusses the GTX 690, Trinity, Ivy Bridge, Amazon, big-box stores, MMOs,...
This month's issue
Feature
Build a PC On Any Budget
Feature
Cloud Services Showdown
How-To
Encrypt Your External Drive
Build It
Upgrade an X58 Rig
Most Commented Articles
Latest Max PC Tweets
- maximumpc: Sources Say New Windows 7 PC Buyers Will Be Able To Upgrade To Windows 8 Pro For $15 http://t.co/0DZRgfCJ58 min 12 sec ago
- maximumpc: Lenovo Reveals ThinkPad X1 Carbon Ultrabook, Claims World's Lightest 14-Incher http://t.co/WWaS6u3023 hours 1 min ago
- maximumpc: RT @nvidia: Another announcement coming! Putting the GPU in the cloud #gtc121 day 2 hours ago
