Act now and you could buy troubled MySpace for a steep discount. AllThingsD's Kara Swisher reports that a MySpace sale could finally be complete, with a lesser-known buyer paying just $20-$30 million for the site that New Corp. snapped up for $580 million back in 2005.
It was previously reported that News Corp. wouldn't accept offers under $100 million for MySpace, but considering that News Corp.'s fiscal year closes at the end of the month, it might be eager to get the doomed site off its books. TechCrunch reported Tuesday morning that MySpace has massive layoffs planned that would trim its staff by 150 people and place an additional 150 employees on a plan that in which they would be allowed to work for a few weeks with pay until they find another job. Swisher said the scale of these layoffs depends on who buys MySpace.
Advertising group Specific Media and private equity firm Golden State Capital are reportedly the most likely candidates to acquire MySpace. Both companies would allegedly focus MySpace on music. An investment group that includes Activision CEO Bobby Kotick had previously been mentioned as the front runner to snap up the once-top social site, but Swisher said "transactional and legal complexities" caused News Corp. to open up negotiations to other parties. Another investor group that includes MySpace co-founder Tom Anderson could also be gunning for MySpace. Swisher noted that it's also possible that News Corp. will retain a small stake in MySpace.
The sale of MySpace has been a slow process. After a series of huge financial losses, News Corp. announced in February that it would begin exploring the option of selling MySpace. It's also been rumored recently that the media company might opt to shutter MySpace instead, but the latest reports suggest that a sale agreement to a smaller player could be reached by the end of the week.