News Corp is Selling MySpace for $100 Million

By Kenna McHugh Comment

Struggling social networking site MySpace is looking for a new owner and hopes to have one by this week’s end. According to The Wall Street Journal, News Corp is seeking $100 million for MySpace, much less than what they paid. The sale is projected to draw bids from several investment firms and companies who may try to buy parts of MySpace or the whole social network.

News. Corp paid $580 million for MySpace back in 2005. While the purchase appeared to be a solid investment at the time, Facebook grew to become the chosen social networking destination. MySpace users left and joined Facebook.

Late last year, News. Corp tried a redesign and a new focus on entertainment and music, but that didn’t work. The company started downsizing, suggesting a clear sign that MySpace was going to the selling block soon.

Digital Trends reports that parties are interested in acquiring MySpace. They include private equity firm THL Partners, Redscout Ventures and Criterion Capital, owner of social network Bebo. Also, Chinese Internet holding company Tencent is interested as is Myspace co-founder Chris DeWolfe. DeWolfe step down as CEO in 2009 and became a strategic adviser to MySpace and serve on the board of MySpace China. The former Facebook executive Owen Van Natta replaced him. It will be interesting to see what the new owner will do with MySpace once the sale is complete.