News Corp. Expects MySpace to Lose $165M in Fiscal Year 2011 (Report)
That would be a significant drop from the $900 million in revenue the social media site earned in 2008.
As News Corp. mulls more layoffs at MySpace amid sale rumors, now comes word that the social media site is expected to lose $165 million for fiscal year 2011, which ends June 30.
TechCrunch says it has obtained a copy of "the confidential MySpace pitch book" that News Corp. has handed out to potential buyers.
In the document, News Corp. says revenue is expected to total $109 million, while expenses are projected at $274 million.
That's a far cry from the $900 million in revenue the site earned in 2008.
However, News Corp. is expecting a better fiscal-year 2012. The company says that revenue will decrease to $84 million but expenses wil fall to $69 million, making the site profitable.
Earlier this month, the Wall Street Journal reported that News Corp. was looking at cutting more jobs following 500 layoffs in January. Over the past two years, a total 1,200 employees have been laid off.
As for a potential sale, the Journal reported that News Corp. has had talks with Tencent Holding Ltd., a Chinese Internet company; music video network Vevo; MySpace founder Chris DeWolfe and private equity firms, including Gores Group and Criterion Capital Partners, the latter of which owns Bebo.