While the media buzzes about Facebook’s new $500 million investment from Goldman Sachs and Digital Sky Technologies and $50 billion valuation, MySpace is at the other end of the spectrum, facing more layoffs and on the auction block.
Over the past few days News Corp has started taking a slew of meetings about selling MySpace and they have many more meetings planned in coming weeks. Sources confirm that the company plans to lay off 50 percent of MySpace’s 1,100 employees in mid-January. But the company’s likely to do many more layoffs than that.
Sources close to negotiations of a sale say those layoffs will be insufficient to lure potential buyers — many more layoffs would be necessary to demonstrate to investors that the company’s on a path to profitability. But with layoffs and talks underway, News Corp is on track to complete a sale of MySpace by mid-year.
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