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News Corp. confirms MySpace sale plan


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Considering spinning it off as separate venture

News Corp. has confirmed that it is looking to sell MySpace or spin it off as a separate going concern.

The news was issued this morning by chief executive Mike Jones staff told Bloomberg, the day after MySpace fired 47 per cent of its workforce. The company will either be sold off or partially funded by News Corp. as a spin-off venture with a new partner that would be partially owned by employees.

News Corp. is assessing a number of possibilities including a sale, a merger and a spinout, Rosabel Tao, a spokeswoman for MySpace commented.

The process has just started.

Jack Kennedy, executive vice president of operations for News Corp.'s digital media group, was named as the person handling the new company according to attendees.

News Corp. paid $580m for MySpace in 2005 when it was the dominant social networking site in the world but use of the site peaked shortly afterwards. Despite a refocus on entertainment and the brief tenure of Owen Van Natta (who spent ten months on the job and sacked a third of the workforce) the site lost $156m last quarter.

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