News Corp Trying to Sell Off MySpace

Remember when News Corp shelled out more than a half-billion dollars to buy MySpace? Well, now it’s trying to dump the once-popular social networking site, and it’s starting the bidding at more than $100 million, a source tells Reuters. The company expects to have five or more bids by the end of the week, with several private equity firms, a Chinese Internet holding company, and even MySpace co-founder Chris De Wolfe rumored to be in the mix.

The site lost $154 million in the fourth quarter of 2010, as users continued their exodus. “For anyone but strategics, or maybe I should say chemically impaired strategics, this would seem to be a totally toxic asset to combine anything at all with,” said one investor who’s staying out of the bidding. But two sources who have considered offers tell AdWeek that they’re drawn to the site’s 50 million to 60 million still-active users, and think News Corp has done a good job fixing the site’s problems lately. (More MySpace stories.)