News Corp. has reportedly narrowed their list of possible bidders down to two remaining front-runners vying for majority shares in the struggling social network. Myspace, which sold to News Corp. for $580 million USD five years ago is for sale once again, this time in the much lower $20-$30 million dollar range. This is a far cry from the $100 million asking price originally expected for the company. For better or for worse, the News Corp. MySpace sale is nearing completion.
Ahead of the acquisition, Myspace may reportedly shed nearly half of its roughly 500 employees. This is a standard move prior to sale which makes a company more appealing by making it smaller and more trimmed down. News Corp. is also expected to keep a minority share in the company, moving forward.
So, does this mean that Myspace might actually make a comeback under new leadership? It would be difficult to really tell at this point. A look at the two companies that are leading the current round of bidding reveal two very different possible plans for the ailing social network.
One frontrunner, Golden Gate Capital, specializes in investing in failing companies. Some of their previous investments include Novell, which has since been changed dramatically. There is no telling whether Golden Gate Capital will work to improve the existing infrastructure of the social network or alter it dramatically in order to create an entirely new business model out of the property.
Another bidder for control of Myspace is Specific Media, which specializes in targeted advertising. It would be reasonable to assume that should they gain majority control of Myspace, their interests would likely be better served by an active and even growing network with which to benefit through targeted ads to users.
Could Myspace be rebranded and relaunched as something entirely new? That may be what it takes to resurrect this network in decline. However, one could argue that if Myspace were to undergo some key changes, then users might give the social giant another chance.
At this point it’s safe to say that Myspace is down, but not out. Corporations have been resurrected from almost certain failure in the past. Steve Jobs returning to Apple is just one example of a company in dire straits that turned around and came back greater than ever with only a few key changes to how they did business.
So, is Myspace in a position to make a real comeback? Leave a comment and let me know.