MySpace CEO Mike Jones has confirmed what we’ve suspected all along: The company is looking for someone to buy the failing property before it’s too late.
“News Corp. is assessing a number of possibilities including a sale, a merger and a spinout. The process has just started,” MySpace’s Rosabel Tao recently told Bloomberg after a company-wide briefing from Jones.
At this point, there’s little doubt that News Corp. wants to unload the money-draining Internet property. News Corp. could once justify its MySpace acquisition just from the hundreds of millions that Google paid it as part of its multi-year search deal.
However, while MySpace renewed its ad deal with Google last month, the terms were shifted significantly in Google’s favor. In the old deal, MySpace was guaranteed around $900 million in search revenue. In contrast, there is no guaranteed money at all in the new deal. MySpace’s revenue stream has been greatly reduced, and no redesign will bring Google’s money back.