Los Angeles – News Corp.’s (NYSE: NWS) struggling MySpace unit expects to
generate revenues of $109 million for its fiscal year ending June 30, according
to a confidential pitch book being presented to prospective suitors for the
company obtained by TechCrunch.
The pitch book reveals that MySpace also
expects to record expenses of $274 million and losses of $165 million for the
fiscal year.
For fiscal 2012, the company projects that expenses will drop to
$69 million, while revenues will fall to $84 million, providing for earnings of
$15 million.
"The pitch book predicts 2013, 2014 and 2015 revenues to be
$101 million, $119 million and $139 million, respectively. With the company
losing 14% of its audience every month, it’s hard to see revenue stabilizing
and then actually rising," wrote TechCrunch’s Michael Arrington.
"It’s
extremely unlikely that anyone believes the projections in the pitch book are
possible."
Related Links:
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(TechCrunch)
