We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
80,259 News Articles

News Corp considering options for MySpace

Social network could face sale, merger or spinoff

News Corp, which owns MySpace, has revealed it is considering a sale, merger or even spinoff of the social network.

"We are considering a number of strategic options for the business," a News Corp spokeswoman told the Wall Street Journal.

According to the newspaper, which is also owned by News Corp, a spinoff is thought to be the most likely outcome.

Meanwhile, a source close to MySpace told Reuters a spinoff was likely to entail someone from the venture capital or the private equity community investing in MySpace, thereby altering the current ownership structure.

The news comes just a day after MySpace announced plans to lay off 500 employees, or about 47 percent of its global staff, as part of a restructuring by the once-leading, now struggling social-networking site.

The reorganisation includes striking up partnerships in the UK, Germany and Australia for managing advertising sales and content, MySpace said.

News Corp purchased MySpace for $580m in mid-2005, when the site ruled the emerging social-networking market and had great potential to be a gold mine of advertising revenue.

See also: MySpace announces 'Mashup' with Facebook


IDG UK Sites

Best Black Friday 2014 tech deals UK: Get bargains on phones, tablets, laptops and more this Black...

IDG UK Sites

Tomorrow's World today (or next year)

IDG UK Sites

25 iOS apps turn (Red) for World AIDS Day campaign

IDG UK Sites

Advanced tips for Mac OS X Yosemite: use Yosemite like an expert - 5 new tips added