News Corp. to sell MySpace

News Corporation is likely to sell MySpace for less than a tenth of what it paid for the social network in 2005.

The price tag for the sinking social networking site is now in the US$20 million to $30 million range, according to unnamed sources, All Things Digital reported today. News Corp is cutting 50 percent or more of the jobs and other costs at MySpace, all of which will be decided upon when an agreement is made with the buyer. Just two months ago, News Corp. said it would not accept bids of less than $100 million.

Private equity firm Golden Gate Capital and ad network Specific Media are both possible buyers, according to All Things D. News Corp. hopes to close a deal by Thursday, the end of its fiscal year.

News Corp. bought Intermix Media, which owned MySpace, in 2005 for $580 million. At the time, MySpace was the fifth most-viewed Internet domain in the United States.

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