News may keep stake in unwanted MySpace
June 29, 2011
US reports say News Corp is likely to keep a stake in MySpace as it chooses between the low-ball offers of $20-35 million from funds Specific Media and Golden Gate Capital. News will also pick up the tab for a further staff cull before the sale.
News paid $580 million for MySpace in 2005. A recent investment in Facebook put its value at $70 billion, while Linked-in trades at $8 billion. News Corp recouped its initial investment with a $900 million search advertising deal with Google, but the site has reported heavy losses. The division where it sits reported a $165 million operating loss for last year.