News Corp. Begins Efforts to Unload MySpace

A source close to the situation reports that the media giant will begin negotiations with interested buyers in early March.

MySpace.com will soon be less of a headache for its owner, News Corp., which has begun efforts to unload the troubled social networking website, Reuters reported Thursday, citing a source familiar with the negotiations.

News Corp. and the investment bank Allen & Co., which the company brought on board earlier this month to assist with the sale, will reportedly begin negotiations with interested buyers in the second week of March.

Approximately 20 parties have so far shown interest in purchasing the loss-making website, and News Corp. anticipates receiving more inquiries in the coming weeks.

Although the majority of buyout or spin-off interest is expected to come from private equity and venture capital firms, the co-founders of the mobile social networking site MocoSpace have publicly stated their interest in buying Myspace.

News Corp. acquired Myspace in 2005 for $580 million only to watch the majority of its subscribers quickly jump ship to the more popular Facebook.com. 

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