News Corp: Friendster... errr... MySpace not for sale

Blog ››› ››› KARL FRISCH

We've noted News Corp chairman Rupert Murdoch's problems with the Internet in the past:

Well, News Corp wants you to know that, despite rumors to the contrary, they aren't selling MySpace.

Dylan Stableford of The Wrap's Media Alley blog writes:

On Tuesday, Business Insider reported what has been speculated for awhile now: that News Corp. and its chief, Rupert Murdoch, are dangling MySpace, the once-mighty social network that has fallen out of favor – and pop culture – since Rupe bought the then-popular site for $580 million in 2005.

The report cited a "gossiper close to News Corp. management" who claims the company is peddling MySpace to private equity firms with an asking price of – get this -- $700 million. Tech Crunch followed with a report that an investment bank, Code Advisors, is working on a possible spin-off, despite the bank's denial. (I spoke with one private equity source, who sees just about every large media deal come across his desk, but he hadn't seen a book on MySpace.)

On Wednesday, News Corp. issued this terse statement: "News Corp is committed to MySpace and is not seeking a buyer."

So, the death spiral of the one-time leading social network site continues. Congratulations Mr. Murdoch. Money well spent.

News Corp.
Rupert Murdoch
Media Alley, The Wrap
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