News Corp considering MySpace sale, spinoff or merger

13 Jan 2011

News Corp is looking into a spinoff, merger or sale of MySpace, just after the ailing social-media site announced it would cut half of its staff.

According to Bloomberg, a spokesperson for News Corp, which owns MySpace, said the company is “assessing a number of possibilities, including a sale, a merger and a spinout”.

She also said MySpace CEO Mike Jones has informed employees of News Corp’s plans for the future of the site.

Jones also reportedly said that if the company is spun off, News Corp will help fund the business and employees would be eligible for shares.

MySpace has been struggling to remain relevant on the web, thanks to the growth in popularity of other social-networking sites, such as Facebook.

MySpace let go of 47pc of its staff this week, but Jones remains confident that MySpace’s recent redesign will pay off.

News Corp’s COO Chase Carey previously stated that MySpace had quarters, as opposed to years, to turn its fortune around.