News Corporation would get $100m for MySpace

 

MySpace 'will sell for at least $100m'.This is true friends.Contrary to earlier reports that the media giant was unable to achieve its asking price of $100m, a source close to the acquisition process told The Telegraph, that News Corporation would definitely get $100m for MySpace, if not more and has deliberately dragged its feet and revealed very few company financials in order to achieve the highest figure.

“News Corporation has been biding its time in order to get as much money as possible for the asset. It will easily achieve the $100m price tag if not more.

“The interested parties, of which there are more than have been reported, are at the due diligence stage and have only in the last week been allowed to see under the hood of MySpace’s figures and business activities. Until now, News Corporation has deliberately restricted information in order to get the price and interest up as high as possible. It’s turned into a dog race between the front runners,” the source said.

News Corporation is expected to sell the asset by or on June 30, 2011, in time for the end of its financial year. However, sources familiar with the deal process expect the procedure to run until “the very last minute”.

Front runners are believed to include: an investor group led by Bobby Kotick, the chief executive of games company Activision Blizzard, Criterion Capital Partners – the private equity company which bought Bebo from AOL last year and social networking site myYearbook.