How A Possible Buyer For MySpace May Help Facebook

MySpace may announce a buyer as soon as this week, if any of the rumors traveling across the blogosphere have any truth to them.

MySpace may announce a buyer as soon as this week, if any of the rumors traveling across the blogosphere have any truth to them.

Our sibling blog Social Times says that MySpace might have layoffs today, and it remains to be seen whether the cuts will go deeper this time around than during January’s firing of 500 people.

We can’t help wondering how much will be left of the struggling social network after any additional cuts — will the buyer just take the hardware, website, trademarks and related intellectual property, leaving everything else behind?

Here’s what eMarketer says about MySpace’s dwindling value :

By 2008, MySpace was top of the social network food-chain, with more than $604 million in global advertising revenue, eMarketer estimates, up from $477.5 million in 2007.

But by 2009, global ad revenues at MySpace faltered, falling 22.3 percent to $469.7 million. That same year, Facebook’s global ad revenues rose to $738.2 million — topping MySpace for the first time — up from $263.9 million the year before, eMarketer estimates.

This year, eMarketer estimates MySpace will earn just $183.5 million in global ad revenue, down 36.3 percent from $287 million in 2010. Facebook, by comparison, will earn $4.05 billion in global ad revenues this year, up from $1.86 billion in 2010, eMarketer estimates.

At the very least, any buyer of MySpace faces an uphill climb in order to recoup any investment in the acquisition. The more cost-cutting occurs with respect to the site, the greater Facebook stands to gain from the continued weakening of the competition.

Readers, what do you think will become of MySpace — this week and longer term?