Numerous parties interested in buying MySpace – News Corp.


3 Feb 2011

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News Corp. has received interest from many potential buyers of MySpace, the company’s COO said during the release of its financial results.

News Corp.’s COO Chase Carey said a number of parties were interested in acquiring MySpace and said it would pursue all options, but was not soliciting anything.

He felt MySpace would be able to achieve its potential “through a new ownership structure.”

MySpace has been struggling to remain relevant in today’s online world, thanks to increasing competition from social networking vendors such as Facebook. It recently let go 500 staff members in order to keep the company sustainable.

Earnings

The news came during News Corp.’s conference call, revealing its financial earnings for the second quarter of the fiscal year for 2011.

News Corp’s revenues reached more than US€8.7bn for the quarter with a net income of US$642m.

However, it recorded a US$275m pre-tax charge for the impairment of goodwill, which included the restructuring of MySpace.

MySpace’s lower search and advertising revenues also had an impact, with the segment it fell under experiencing a second-quarter operating loss of US$156m, US$31m greater than last year.