New York – News Corp. (NYSE: NWS) is expected this month to lay off more
than half of the staff at MySpace, its social network-turned entertainment
portal, and sell the site off by mid-2011, CNBC reported on Monday, citing
sources. Reuters cited a person familiar with the matter as saying the company
is currently not in any talks with potential buyers, but previously reported in
November that News Corp. was considering a sale of MySpace — following its re-launch
with an entertainment focus.
Sources told CNBC that the expected massive round
of layoffs — shaving half of the company’s 1,100 employees — would be
insufficient to attract potential suitors, and that more layoffs were likely.
Despite
losing traffic as a social network to rival Facebook, MySpace is still
attracting some 54 million monthly visitors.
News Corp. acquired MySpace for
$580 million in 2005.
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