News Corp (NWSA.O) will seek bid for Myspace this week, valuing the Los Angeles-based Myspace at more than $100 million.
Six private-equity firms and companies are expected to submit bids to News Corp, which paid more than $580 million for Myspace in 2005, beating out other media companies. Like Friendster, Myspace was a pioneer of the social networking space between 2005 to 2007, but it soon lost out to Facebook.
Myspace reported an operating loss of $156 million for the quarter ended Dec. 31. The companies considering a bid for Myspace and entertainment site(relaunched the site as a social entertainment site with a focus on music, movies and celebrities) include private equity firm Thomas H. Lee Partners, Redscout Ventures and Criterion Capital Partners LLC, owner of social networking site Bebo.
A Myspace spokeswoman declined comment on the report.