Report: MySpace to be sold for just $20-30 million

As we reported earlier today, the once massive social networking web site MySpace is rumored to be conducting mass layoffs ahead of a possible sale. Now the AlllThingsDigital web site is reporting that MySpace's current owners News Corporation could sell off the company later this week for a price that's reportedly between $20 million to $30 million. Once more the two companies that are reportedly in the running to purchase MySpace are apparently not the ones that were previously reported to be interested in the web site.

Previous Internet rumors said that an investment group that would have included Activision's current CEO Bobby Kotick was in the lead to purchase MySpace from News Corp. Now AllThingsDigital claims via unnamed sources that two other groups, Golden Capital and Specific Media, are currently the top possible bidders for the site. Golden Gate Capital is a private equity firm that has never purchased an Internet-based company while Specific Media is an advertising network. The story also says that other groups might still be in the running to purchase MySpace including an investment group that contains MySpace co-founder Tom Anderson. Yet another interested group has yet another MySpace co-founder, Chris DeWolfe, as part of its team.

Earlier today TechCrunch reported that MySpace would lay off 150 of its current 450 workers on Wednesday ahead of any sale. The report also claims that another 150 MySpace employees will also be laid off but would still be allowed to work at the company for a few weeks while they look for a new job.

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21 Comments

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Sites like these need to die...facebook is next in line. Being "Social" means getting out and talking to others face to face not behind some sorta interaction site that is built around advertising much like facebook is. Makes me sick how some people praise it for jobs when it hurts way more than it creates.

Myspace still gets pretty decent ammount of traffic. Facebook will buy myspace and then 301 redirect the domain to their site. Voila, another 10-15 million new users.

I guess they rejected my bid for $5. About all it's worth anymore but OH WELLS...

On another note, wth is up with Neowin? I almost had a timeout trying to bring up the comments.

MS Lose32 said,
On behalf of Mark Zuckerberg, who could not be here today, I announce this statement, and I quote, "LOL!".

Haha...

Jmixmaster said,
Just close it down permanently. Its best days are far, far behind it.
You know, its possible we could be talking Facebook like that in a few years.

"Golden Gate Capital is a private equity firm that has never purchased an Internet-based company while Specific Media is an advertising network." - So they want to begin with My____ lol

Unix2 said,

Wow, they lost $520 million dollars... Pretty bad investment.

But due to US tax laws they'll probably to be able to wipe $520 million of their next corporation tax bill

thealexweb said,

But due to US tax laws they'll probably to be able to wipe $520 million of their next corporation tax bill


And that's why US is out of money?

Raa said,

And that's why US is out of money?

Heh, no, that's not how it works. Corporate taxes are paid by the common man anyways.

The U.S. is out of money because our politicians are power hungry ******* that use tax payer money to buy votes.