Despite losing $165 million in the most recent quarter, Myspace apparently has some suitors. The Wall Street Journal reports that an anonymous “investor group” has taken the lead in negotiations to buy the company. Myspace’s current owner News Corp. is looking to maintain a 20% stake in the company as part of the proposed deal. Which is interesting, because it means News Corp. still believes in Myspace’s potential, just not in their own ability to run the company.
More on Myspace’s potential fate from the WSJ:
Some other suitors who have remained interested in recent weeks include private-equity firm Criterion Capital Partners LLC and social networks Tagged Inc. and myYearbook, according to other people familiar with the matter. Former Myspace chief executive Chris DeWolfe and music-video site Vevo, a joint venture between major record labels, had also been in the mix, some other people familiar with the matter said. Talks with Vevo have been stalled for several weeks, though a deal between the two was long considered unlikely, in part because the companies were discussing a complicated arrangement that could have entailed Vevo collaborating with Fox’s television arm to create new programming, these people said.
Whatever Myspace’s fate, it looks like News Corp. wants to make a decision before the end of the financial year on June 30.
Previously on Fishbowl LA: Time Is Ticking For MySpace