No Bright Future for MySpace ?

Added by Annika L. Krugel on January 16, 2011

Following the laying off of half the staff of social networking site MySpace, its owner, News Corp, is said to be exploring strategic options for the future of the site, including a sale or a spinout.

MySpace, which was bought by News Corp for $580 million in 2005, on Tuesday announced that some 500 of its employees, or 47 percent of the total staff, are going to be laid off.

In November last year, News Corp Chief Operating Officer Chase Carey, reportedly told investors that the site has quarters, not years, “to turn itself around.”

At the time, Casey also told Reuters that News Corp is exploring all options for the site, something that was this week echoed by News Corp spokeswoman Julie Henderson, who on Wednesday announced that “We are looking at a number of strategic options for the business, including a sale, merger or spinout.”

MySpace, once the top of the social networking sites, have in recent years faced tough competition from Facebook, which now can report some 500 million users worldwide.

In October, MySpace launched a new version of the site that focuses on music, movies and entertainment, and targets an audience of those 35 years old and under.