(SAN FRANCISCO) -- In what can only be described as the last straw, MySpace is set to be sold for a fraction of what News Corp. paid for it in 2005.
Private equity firm Golden Gate Capital and Specific Media, an online advertising company, are the two major bidders in the sale of the once-popular social media site. News Corp.-owned site AllThingsD.com reports that the sale could be finalized by Thursday and that the sale price may be between $20 million to $30 million -- a small sum considering News Corp. bought MySpace in 2005 for $580 million.
This latest report comes a day after separate reports indicated the fledgling social media platform is preparing to make significant cuts to its workforce.
MySpace was largely used by indie music groups but failed to reach all demographics in the same way Facebook has. Facebook, which arrived on the social networking scene with simplicity of design and aggressive marketing, overtook MySpace as the leading social media site and now has nearly 700 million users compared to an estimated 30 million MySpace users.
Copyright 2011 ABC News Radio