MySpace CEO says that News Corp may be looking to sell

MySpace logoJust a day after former social networking behemoth MySpace announced massive cuts to its workforce, parent company News Corp has now confirmed that it is investigating its options to divest itself of the now struggling service.

The comments came as part of a wider company-wide meeting Thursday held by CEO Mike Jones, and were confirmed by a company spokesperson in an interview with Bloomberg. Among the options being considered is a merger, spin-off, or outright sale of the unit.

"The process has just started," spokesperson Rosabel Tao said. MySpace may have begun to drag on News Corp's financials overall: it is believed that the unit may have lost as much as $100 million last year alone, and executives have called losses at MySpace neither "acceptable nor sustainable."

These losses likely have a lot to do with why the social networking service let go of 47 percent of its workforce on Wednesday.

News Corp purchased MySpace in a blockbuster $500 million transaction in late 2005. At the time, it was considered to be a solid move for the news and entertainment conglomerate, and may have added as much as $12 billion to News Corp's valuation.

Such success was short lived, however. Over the next several years Facebook took off, and consumers increasingly turned to the MySpace competitor for their social networking needs.

This move led MySpace to attempt to reinvent itself by focusing on its strengths in entertainment in its redesign that launched in November, but it may be too early to judge whether the move is successful. In any case, News Corp says it has seen some uptick in users since the relaunch.

According to Bloomberg sources within the meeting, if the site is spun off, News Corp would help fund the company and its employees would be eligible for shares in the company. News Corp has also decided to appoint digital media group operations chief Jack Kennedy to handle any potential buyout offers.

Source: Betanews

Tags: MySpace, social networks

Comments
Add comment

Your name:
Sign in with:
or
Your comment:


Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party


Last news

 
You can use a security key instead of having a code sent to your phone
 
Adobe says that the AI can now achieve the intended result in seconds
 
A new security protocol replacing the aging WPA2
 
Download and install at your own risk, of course
 
More iPhone parts likely to be produced by Samsung
 
Starting on Friday, video views on YouTube will start to be counted by the Official Charts Company
 
LG has already announced two new V-series members in 2018
 
The method is blocked and the hack doesn’t work, it adds
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 /
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
 
 

News Archive

 
 
SuMoTuWeThFrSa
    123
45678910
11121314151617
18192021222324
252627282930 




Poll

Do you use microSD card with your phone?
or leave your own version in comments (11)