GWOP Report: News Corp sells MySpace for $35 Million
News Corp. (NWSA) agreed to sell Myspace to Specific Media Inc. for a fraction of what it paid six years ago, ending its efforts to turn around the money-losing social networking business.
News Corp. will receive $35 million, including a 5 percent stake in Specific Media, according to a person with knowledge of the situation who wasn’t authorized to speak publicly. Specific Media announced the sale in a statement today, without providing the terms.
The accord rids News Corp. Chairman and Chief Executive Officer Rupert Murdoch of a website that lost its lead in social networking to Facebook Inc. after being acquired in 2005 in a $580 million deal. The company had sought about $100 million for Myspace after Chief Operating Officer Chase Carey said in February he wanted a deal completed by the June 30 end of the parent company’s fiscal year.
GWOP MAGAZINE 