News. Corp. has talked to several parties including China’s Tencent, Vevo, Myspace co-founder Chris DeWolfe, and other private equity firms on a possible deal to sell Myspace according to The Wall Street Journal, which is also part of News Corp..
The report also came along with news that Myspace could be laying off more employees, its second round of layoffs for 2011… More bad news follows as the News Corp. segment which includes Myspace reported a $156 million operating loss during Q4 last year.
Clearly, things don’t seem to go very well for Myspace even after it changed its strategy to focus on music and entertainment. As I previously wrote, Myspace will still face pressure from Facebook even after a different direction was adopted. It will lose traction as Facebook continues to shine. The possible layoffs and sale seem to be the final outcome as Myspace loses the social network battle.
On last note, I’m a little surprised to see Tencent involved in this Myspace report. Vevo to acquire Myspace could be a possible yes. But many eyebrows would be raised if Tencent were to make the acquisition deal happen.
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