Myspace fired 500 employees and is seeking strategic options

A day after dismissing half of its global workforce, MySpace chief executive told employees who continued working at the company owned by News Corp., owned by media mogul Rupert Murdoch, who is exploring the possibility of a sale, merger or corporate split (division of the company in another entity) the social environment.

Myspace Executive Director spoke of the plans in a meeting with members of the company on Wednesday, according to News Corp., a company that also owns the Wall Street Journal (WSJ). “We are considering a number of strategic options for the business, “said a spokesman for News Corp.

Of the three options, a business division or spin-off is seen internally as the most logical result, said a person familiar with the matter. Mr Jones told the employees that their hope is to enter into an agreement in which employees would be eligible for participation in the company, the source added.

News Corp. is in the initial stages and plans to hold meetings with potential partners in the near future, a person familiar with the matter reported to the WSJ. Jack Kennedy, executive vice president of operations for the digital unit of News Corp., will be part of the computer for potential deals, the source said.

On Tuesday, representatives of Myspace said that ended with 500 employees or 47% of its workforce, as part of a wider restructuring process that involves a further reduction of the international operations of the site that have been in decline.

News Corp. acquired MySpace in 2005 for a total of $ 580 million. In recent years the site has suffered sharp declines in traffic and revenue, and eventually was eclipsed by Facebook, the dominant network in the digital marketplace.

Myspace has undergone several rounds of cuts and changes in management in an effort to stop the bleeding. Recently re-launched as a platform to find and share entertainment. While News Corp. executives have said they are encouraged by the progress of the site launched, also indicated that patience is running out.

In a conference call with analysts in November, the chief operating officer of News Corp., Chase Carey, said that losses on Myspace “are not acceptable or sustainable” and that efforts to change the site would be judged “in quarters, not in years. “


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