June 28, 2011, 4:27 PM — It appears News Corp. finally may have found a buyer for the incredibly shrinking social networking company called Myspace.
Which just goes to show you what perseverance and going door to door can accomplish!
According to AllThingsDigital's Kara Swisher (she of the constant scoops and elaborate ethics statement), two companies are finalists for the deal, which could be as low as $20 million or as high (probably not the best word in this context) as $35 million.
News Corp., owned by media baron Rupert Murdoch, reportedly wanted $100 million for Myspace, for which it paid $580 million in 2005, back when Myspace was the biggest social networking site in the world and Facebook was a cute little wannabe.
The two bidders in contention are Specific Media and private equity firm Golden Gate Capital, though it'd be sort of funny, for the purposes of this storyline, if the latter were named General Capital. Perhaps GGC would consider changing its name for today. It could always change back tomorrow. C'mon, you gotta work with the media sometimes!
Specific Media is an ad network run by not one, not two, but three self-proclaimed visionary brothers.
Golden Gate Capital, while claiming no visionaries in residence, does have $9 billion in capital under management. So it could buy Myspace for lunch.
Of course, all this is according to "people familiar with the matter," so who knows? Supposedly the deal could be announced by Wednesday.
All joking aside, now for the sad part: Myspace's staff of 500 reportedly could be cut by more than half as part of the acquisition, which sucks for the employees, but hardly could be called a surprise.
News Corp. has been trying to sell Myspace since at least the beginning of the year.
We'll have to wait a bit to see how this unfolds and, assuming there's a sale, what the new owner's plans are for the site and its undoubtedly depressed surviving workers.
Myspace employees, if you haven't started networking and job-hunting, get going. There are better days ahead.