MySpace Expected to Sell for $35M By Wednesday (Updated)

The one-time social media giant is expected to cut 50 percent of its employees

(Updated, 5:44 p.m.)

News Corp. is expected to close a deal to sell MySpace for $35 million by Wednesday morning, an individual with knowledge of the discussions told TheWrap.

Negotiations for the troubled social media site accelerated on Tuesday among four bidders, the individual said. 

Among those in the hunt for the troubled social media company are MySpace co-founders Chris DeWolfe and Tom Anderson. They may submit separate bids with private equity partners contributing backing.

Bidders for the company also include Specific Media, an advertising network, and Golden Gate Capital, a private equity firm.

News Corp. is poised to unload MySpace  for a fraction of the $580 million it paid to acquire the site in 2005, TheWrap has confirmed.

The individual said that the deal will likely  include a mixture of cash and stock. 

A News Corp. spokesman declined to comment. 

Also read: News Corp.'s Failed Social Experiment: Why MySpace Didn't Deliver

About 50 percent of MySpace's employees, now numbered around 400, are expected to be be fired in conjunction with the sale. The sale would coincide with the conclusion of News Corp.'s fiscal year.

This would be the second major round of layoffs this year, as MySpace let go almost 500 employees in January.

News Corp.’s purchase of MySpace back in 2005 has been disastrous, as the rise of Facebook and other social media sites have caused a precipitous drop in MySpace’s traffic and advertising revenues.