How the mighty have fallen. Former social networking champion MySpace has been in trouble for some time now, but it is doubtful anyone thought it was quite this bad.
Purchased by News Corp. in July 2005 for $580 million, the site has been up for sale since April of this year. The problem is that no one seemed terribly interested in taking on the beleaguered site. According to All Things D, two companies are now in the running to purchase the site before this Thursday, the last day of the financial year for News Corp. Oddly, you have probably never heard of either company, and the price is almost laughable.
Apparently the price has dropped into the range of $20 to $30 million, and the companies offering up the funds are Specific Media and Golden Gate Capital – as we said, companies you’ve probably never heard of. The former is an advertising network, and is said to be in the lead according to sources. The latter is a private equity firm with $9 billion under management. News Corp. may keep a minor holding in the company, but that is not a certainty as of yet.
There are rumors that there are some other potential contenders, including one that involved MySpace co-founder Tom Anderson. Wouldn’t that just be odd? He sold it for $580 million, and helps buy it back for $30 million, talk about your nice profits.
None of this is a lock as of yet, but it definitely looks like MySpace will sell in the next few days, and that will be followed by more staff cuts and a lowering of expenses. What the new owners will do with the site is anyone’s guess, but it has come to a point where you have to wonder why anyone would even want the site any more: The traffic is still in free fall, it is the butt of endless jokes in the technology community and hardly anyone will admit that they still visit the site. Perhaps it’s time to just call it a day for MySpace, and close the doors with at least some dignity.
What do you think? Should MySpace keep going?
[via All Things D]