Rupert Murdoch joined Twitter about a month ago, and like many active members of the Twitterverse, he's been using the platform to speak his mind. His latest tweet gives a tiny glimpse into what went wrong with formerly News Corp.-owned MySpace.
"Many questions and jokes about My Space.simple answer - we screwed up in every way possible, learned lots of valuable expensive lessons," the News Corp. CEO tweeted.
News Corp. acquired MySpace in 2005 for $580 million, but after losing ground to Facebook for several years, the company sold MySpace in June at the discount price of $35 million.
The company's August earnings report showed that News Corp. lost about $254 million on MySpace and losses from the once-top social networking site drove News Corp.'s overall net income down 22 percent.
News Corp. has reportedly started the process of selling its troubled MySpace social-networking site.
MySpace has enlisted the help investment bank Allen & Co to aid in the potential deal, and around 20 companies have already expressed an interest according to Reuters.
Some of the interest in MySpace could come from Zynga, the social gaming company behind popular titles like FarmVille and CityVille, Reuters said.
MySpace's struggle has been widely reported, and there has been chatter for months that News Corp. was looking into a sale or spin-off of the once-top social-networking site. News Corp. began 2011 by laying off nearly half of MySpace's staff. In an earnings call earlier this month, chief operating officer Chase Carney finally confirmed the rumors when he said "now is the right time" for the company to start exploring these options.
MySpace said Tuesday that it is cutting nearly half of its staff in an effort to create a "much tighter focus".
The layoffs, which will affect about 500 people, were placed in context of the site's October redesign, which chief executive Mike Jones attempted to portray as a sign of the company's positive direction.
Jones said that the layoffs were necessary to cut costs. "Today's tough but necessary changes were taken in order to provide the company with a clear path for sustained growth and profitability," Jones wrote, according to reports. "These changes were purely driven by issues related to our legacy business, and in no way reflect the performance of the new product. The new organizational structure will enable us to move more nimbly, develop products more quickly, and attain more flexibility on the financial side. We are also committed to rebuilding the company with an entrepreneurial culture and an emphasis on technical innovation."