News Corporation revealed on Wednesday that it is exploring the possibility of selling or spinning off MySpace, just a day after the troubled social-networking site announced heavy layoffs.
During an announcement that confirmed many rumours, MySpace chief executive Mike Jones briefed employees on their options during a companywide meeting on Wednesday, spokeswoman Rosabel Tao told Bloomberg. "News Corp is assessing a number of possibilities including a sale, a merger and a spinout [spin-off]," Tao said. "The process has just started."
News Corp bought MySpace in 2005 for $580m (£368m) as part of its purchase of Intermix. But the former social-networking sensation has fallen on hard times lately, losing more and more ground to Facebook until it finally underwent a massive redesign.
For more on this ZDNet UK-selected story, see News Corp. mulls sale, spinoff of MySpace on CNET News.
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Talkback
I feel MySpace is trying to do the right thing in redesigning its user experience. In the "negotiation" for users' attention, it is trying to meet their needs as consumers by focusing more on its music strengths and less on its legacy as a social network. Generally when you focus on the other side's needs in a deal you end up with a win of some kind. At worst this exercise will give it more value in any sale or merger talks that might take place