Frankly, if someone had told us that MySpace was just going to be shuttered, we would not have been surprised. But it looks like the sale is going ahead and bids from no fewer than half a dozen potential suitors are expected this week. If that wasn't shocking enough, the value News Corp. insists on getting out of the faltering social site is something else.
According to a source involved in the deal who spoke to the Wall Street Journal, News Corp. is seeking bids of $100 million or more. We understand their desire to make up a little ground considering MySpace was bought for $580 million just six years ago. However, the site's traffic is spiraling downward quickly. Unique visitors are down nearly 50% in the last year and the site is hemorrhaging cash.
The structure of the potential deals vary, with some requiring News Corp to maintain a small stake in the company. Others might simply want to dismantle the site as it currently exists and start over. Observers claim a deal could be finalized as early as June. Do you think MySpace has a future with a new owner?