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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?