Is Rupert Murdoch About to Unfriend MySpace? News Corp Considers Sale or Spinoff
Read Full Story
Social networking pioneer MySpace could find itself going solo again soon. Its owner, News Corp. (NWS
), is considering a potential sale or spin-off of the social network as it looks for a way to stem the tens of millions of dollars in losses it's taking from the unit, according to a Bloomberg report
MySpace, which earlier this week took a hatchet to its workforce when it laid off about 500 of its 1,100 or so employees
, is on a mission to achieve positive cash flow by June, Bloomberg noted in the article. Earlier this year, MySpace reported just under $100 million in losses for the fiscal year that ended in June, and it faces an uphill struggle to return to profitability.
If News Corp. decides to spin off MySpace, its employees could find themselves eligible to become stakeholders in an independent company. Either way, News Corp. also seeking partners to lend a hand in aiding MySpace to become more of a lean and entrepreneurial operation, according to Bloomberg.
Get info on stocks mentioned in this article