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The Gap Partnership

Myspace might use sales negotiations soon

Sales negotiations could soon take place concerning Myspace.

11 January 2011

Sales negotiations may soon prove useful for Myspace, if recent suggestions are anything to go by.

It is widely reported the social networking site - owned by News Corp - is preparing to axe around half of its staff, cutting the number of employees to around 500.

Reports suggest this will make the firm a more attractive proposition for potential buyers following a decline in profits.

According to a person with knowledge of the situation, MySpace recently renewed a search deal with Google but the agreement was reportedly for "significantly less revenue" than the $900m (£578 million) deal it replaced, reports the Financial Times.

"The cuts seem to go against everything that we've been trying to do. The only reason seems to be to make it more attractive to a buyer," one MySpace employee is quoted by the paper as saying.

Sales negotiations have recently led to an agreement that saw IT firm iGate acquire a 63 per cent stake of Patni Computer Systems. 

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