News Corp Rushing a Myspace Sale, Expecting about $20 Million
Bought by News Corp. for $580 million in 2005, the still-spiraling-to-its-doom Myspace is now looking to be pawned off before its fiscal year end for between $20 and 30 million, reports Kara Swisher at All Things Digital and picked up by Dan Primack at Fortune. As for the two likely prospective buyers, well, Swisher's right that you've probably never heard of them:
Specific Media--a large, if lesser known, advertising network--seems to be in the lead, said sources. It has been around for a half-decade and has been funded by Francisco Partners. Golden Gate Capital is a private equity firm with $9 billion under management, which has mostly specialized in turning around companies. It has never invested in a consumer Internet company.
News Corp. might also retain a small minority stake in the site after it is sold, costs are cut, and layoffs are made, Swisher reported. Both leading buyers have indicated that they will focus their efforts on Myspace Music, the social network's seeming strongest suit (well, compared to everything else), since Facebook made the site irrelevant. News Corp's urgency appears to be mostly about unloading the site before the next fiscal year begins: "In other words, let's get Myspace off the books for 2012!" Swisher writes.
