Space for MySpace?
In a week that has seen approximately half of MySpace's employees lose their jobs, the site's owner, News Corp has confirmed it is considering a sale, merger or spinoff of Facebook's once rival.
Top of News Corp's list of possibilities is a spinout, Reuters reported, having been tipped off by an anonymous former MySpace insider.
If this was to happen, it is believed a venture capitalist or private equity firm would give the ailing website a financial boost, consequently altering MySpace's ownership structure.
It has been acknowledged that MySpace is no longer in direct competition with Facebook, with the site getting a musical makeover in October 2010 to carve its niche in the social networking space.
MySpace's CEO, Mike Jones has previously said that 3.3m new profiles have been created since the site's refocus as a ‘social entertainment destination' but the new look MySpace will have to do well to recoup money lost since news Corp bought it for $580m in 2005.
News Corp spokeswoman, Julie Henderson, told Reuters: "We are looking at a number of strategic options for the business, including a sale, merger or spinout."
The official line arguably confirms previous reports that News Corp's COO, Chase Carey reportedly told investors that MySpace has mere quarters rather than years to make good.
MySpace announced on Tuesday that as part of a ‘significant organisation restructuring' it was cutting almost half of its staff, putting around 500 people based in the US, London, Berlin and Sydney out of a job.
