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News Corp. Close to Selling a Chunk of MySpace to Activision Blizzard CEO Bobby Kotick

Bobby Kotick
Tony Avelar/Bloomberg via Getty Images
Bobby Kotick

The media conglomerate paid $580 million for MySpace six years ago, but insiders say the social-networking company is only worth about $100 million today.

Bobby Kotick, the CEO of video-game company Activision Blizzard, is part of an investor group that is closing in on a deal to purchase from News Corp. a controlling interest in MySpace.

Reuters reported Thursday, citing a source familiar with the negotiations, that there are several bidders but that the Kotick group has the inside track. News Corp. would retain about a 20% stake in the company.

News Corp. paid $580 million for MySpace in 2005 in a deal that was hailed by many as a bold and potentially lucrative bet on the burgeoning social-media industry. But against withering competition from Facebook and Twitter, Reuters says News Corp. would be lucky to strike a deal that values MySpace at $100 million.

Others who are in the bidding, according to Reuters, are MySpace founder Chris De Wolfe, music vidceo site Vevo and MySpace CEO Mike Jones.

Kotick's investment would be a personal one, unaffiliated with Activision Blizzard, according to Reuters.