News Corp Myspace

Even more jobs may go as the Myspace plunge continues

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By The Drum Team, Editorial

April 10, 2011 | 2 min read

Still seeking a buyer, no sign yet of an end to News Corp's unhappy experience with social networks

Myspace, the social network that has become an albatross round the neck of News Corp, may lay off even more employees as part of efforts to sell the company, according to a weekend report.

Job cuts have already been deep. In January, 500 of more than 1,000 staff went . In the past two years, the once high-flying social network has cut 1,200 jobs.

The hint of possible further cuts is made in an article in the Murdoch-owned Wall Street Journal.Those reported to have been in talks with News Corp about buying the company include: Chinese internet company Tencent Holding, online music video network Vevo, Myspace founder Chris DeWolfe and private equity firms Gores Group and Criterion Capital Partners, owners of social networking site Bebo.

Another idea being considered is that News Corp combine Myspace with another site in exchange for cash and equity in the combined company.The layoffs would be the second staff reduction at Myspace this year.

Further lay-offs would likely depend on whoever bought Myspace. Talks are said by Reuter to have taken place with Tencent and Mr. DeWolfe.As Myspace tries to reposition itself as a hub for music, entertainment and games, its plunge is continuing. In February, traffic was down 44% from a year ago to 37.7 million unique U.S. visitors. Comscore said this was its lowest monthly total since February 2006. The News Corp. division that takes in Myspace had an operating loss of $156 million for the quarter ended Dec. 31, the main factor being the site's poor performance.

News Corp Myspace

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