News Corp ramps up efforts to sell MySpace
updated 08:35 pm EST, Thu February 24, 2011
Media giant to meet with prospective buyers
News Corp. has reportedly ramped up efforts to divest its MySpace assets, unnamed sources have told the Wall Street Journal. Investment bank Allen & Company is said to be scheduling meetings with prospective buyers on behalf of the company, while providing the first in-depth looks at MySpace's financial information.
The latest owners of the social networking site have yet to bring the asset back to profitability, as losses in the segment ballooned by a factor of five to reach $156 million for the last quarter in 2010. Nearly half of the staff were cut in January, following a significant redesign of the website.
COO Chase Carey recently highlighted "encouraging metrics," though he admitted that a true turnaround might be best left to a new owner.
The latest information suggests approximately 20 companies are considering the purchase, with meetings scheduled in early to mid March.
