MySpace is facing major layoffs and the possible sale by parent company News Corp., the Wall Street Journal reported Monday.
The social-networking site has been in a long slump of declining advertising revenue and user base.
The Journal, in a report posted on its website Monday, said the unit may face the loss of as many as half of its roughly 1,100 employees. It also said that News Corp. execs were exploring options for a sale of the company, which it acquired in July 2005 through its $580 million acquisition of Intermix Media.
MySpace was seen as a great catch for News Corp. at the time of the 2005 purchase. But the site has steadily seen its popularity dim in comparison to Facebook, which now boasts more than 500 million members.
Reps for News Corp. had no comment on the Journal report late Monday. – — Variety staff