Breaking News: News Corp Hangs “For Sale” Sign on MySpace

$275 million is what News Corp. spent on improvements to MySpace in 2010. That was simply in an attempt to right the sinking ship that the network has become.

Now, News Corp. COO Chase Carey told analysts during quarterly earning reviews, that:

“With a new structure in place, now is the right time to consider strategic options for this business. 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 it’s full potential may be best achieved under a new owner.”

However their attempts at resurrecting MySpace by targeting the under 35 demographic through new site features like playlists, custom backgrounds and hooks into Facebook have met with lukewarm interest. Causing Time.com’s Techland blog to put out such tongue-in-cheek lists like: 5 Failed Social Networks Even Worse Than MySpace.

In fact MySpace can be credited with some of News Corp.’s biggest losses in Q2. News Corp. has tellingly classified MySpace in the “Other” category, for which losses grew $31 million dollars over the previous year to$156 million dollars in total losses in Q2. The huge jump in losses was pinned on “lower search and advertising revenue” on MySpace.

That type of performance should attract a lot of buyers.

One Response to Breaking News: News Corp Hangs “For Sale” Sign on MySpace

  1. Pat Grady says:

    there are some for sale signs on my street too, same deal.