MySpace sale: Bought for $580 million, sold for $30 million?

News Corp will dump MySpace, according to reports. Can MySpace recover after the sale?

MySpace could be sold by tomorrow. Once the king of social networks, MySpace has slid from $580 million to a reported $30 million.

MySpace’s parent company News Corp. is in the final stages of selling the under-performing social network for $20 - $30 million, reports All Things Digital.

News Corp. is apparently in a rush to complete an acquisition deal by Thursday — its fiscal year-end. The media giant probably doesn’t want MySpace to blemish its 2012 financial records, especially given the lackluster revenue predictions.

Backing up earlier information, the report indicates that significant cuts in staff and operating costs will be made to MySpace depending on who the buyer is. News Corp. might also retain a small minority stake in the company, according to the report.

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Specific Media and Golden Gate Capital are at the top of the list of companies that could acquire MySpace. Both companies would focus MySpace on music, sources told All Things Digital. However, it’s unclear if prior music licenses will transfer with the sale.

An investment group that includes MySpace co-founder Tom Anderson, another separate investment group that includes MySpace co-founder Chris DeWolfe and Criterion Capital Partners have also been rumored as showing interest in purchasing the company, according to the report.

News Corp. purchased the California-based social network in July 2005 for $580 million. The company’s revenue peaked at over $900 million in 2008.

Myspace laying off 150 employees?

The once great social networking site MySpace is expected to make big cuts to its employee ranks Wednesday, reports Gawker.

TechCrunch later confirmed with sources inside MySpace that the company is laying off at least 150 (37.5 percent) of its 400 remaining employees– with another 150 employees possibly being put on a transition plan while looking for new jobs.

In January, MySpace cut 47 percent of its staff as part of the social networking site’s first attempt at re-branding itself into a content portal.

MySpace’s parent company News Corp has been extremely unsuccessful in its effort to sell the company. The latest round of layoffs is part of an effort to make MySpace more attractive for potential buyers by stripping it down.

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