Once a “proud” owner of MySpace, today News Corp., apparently, is looking further to get rid of it – certainly in a respectful manner. After constant decline in market share and departing visitors , News Corp is weighing the sale of MySpace as one of a few remaining options to deal with the once popular but now languishing social network.
In an earning conference call two days back, News Corp. CEO Chase Carey said the time is right to consider either restructuring its relationship with MySpace or just selling it outright.
“We recognize that the plan to allow MySpace to reach its full potential may be best developed under a new ownership structure and we’re evaluating those strategic alternatives,” Carey said, according to the AFP news service.
Eventually, Carey has confirmed that News Corp is exploring many other possibilities besides the unloading MySpace but only if it will be beneficial and satisfactory to the company’s management. However, its been confirmed that News Corp is already in touch with couple of potential buyers who are interested in buying sinking ship.
What Value Does MySpace Hold For Potential Buyers ?
In July 2005, News Corp paid whopping $580 million to eUniverse, a parent company of MySpace then, as buyout deal of MySpace. It was time when MySpace was riding high with success and was tagged as the biggest online community in the world. It was year 2008 when finally Facebook started leading the community at the expense of MySpace.
As on today, MySpace has seem the steep decline in traffic, number of users and Alexa ranking which stands as 56 compare to second position of Facebook.
So what are those strings which are still pulling investors and interested buyers towards MySpace – The huge database of users with their personal information !
Certainly, MySpace may not be having that much of ad revenue as it used to earn one time. Neither traffic is jumping nor the users but the million of users’ personal record which is stored in MySpace database is much more worthy for many companies who known how to turn that into bucks..
For any organization it will take years to collect such information and if MySpace goes on auction, potential buyer will value only the database which is worth millions of dollars.
News Corp knows the trick and that may be the prime reason, it is more interested in unloading MySpace than restructuring to recover back maximum investment as soon as possible. With constant growing challenges by Facebook & Twitter, MySpace market value is slipping down every day despite of their various attempt of introducing new feature and design including “Facebook Login for MySpace”.
Whatever efforts MySpace may plan to do as next course of action, one thing so pretty clear – Time is running out and Chase need to do something fast, very fast.