A recent report on Mashable has revealed that News Corp has officially stated it plans to sell Myspace.
COO Chase Carey said that “now is the right time” to attempt to place the social network “under a new owner.”
It’s been a crazy few years for Myspace. News Corp acquired Myspace in 2005 for $560m (£358m) and in November 2010, the site was to re-launched as a new ‘social entertainment destination’, complete with new features, a sleek new feel and a brand new logo.
However, public demand was not as they has expected and only two months after Myspace re-launched, the company laid off almost half of its workforce (approximately 500 people).
In spite of all these changes, a News Corp company rep said that the parent company isn’t entirely pleased with the results – ad revenues are lower than they once were, and “results at MySpace have been below our expectations.”
“The new MySpace has been very well received by the market and we have some very encouraging metrics. But the plan to allow MySpace to reach its full potential may be best achieved under a new owner.”
The over-haul of MySpace’s design and features has not been cheap for its parent company. In its earnings statement, News Corp said that while cable and broadcasting revenues are solid, the company “recorded a $275 million pre-tax charge for the impairment of goodwill related to the Digital Media Group and an organizational restructuring at MySpace.”
Rumours of MySpace’s eventual sale have been stirring for some time now and Carey’s confirmations suggest News Corp would prefer that sale happen sooner rather than later.
News Corp has done a lot to fix up Myspace. But as the evidence suggests, even with the new redesign and restructuring, it may not be enough to make it an appealing investment.
What do you think? Can anyone save Myspace?