Who said Myspace was dead? According to a report by AllThingsD, under the purchase agreement News Corp would retain an equity stake, possibly in the area of about 20 percent, but that has yet to be confirmed. It seems to be down to a three man race for the once popular social network but it would appear that the group with Kotick are now the front runners ahead Myspace founder Chris De Wolfe, music video site Vevo, and current Myspace CEO Mike Jones in partnership with private equity backers. Sources close to the deal say that Activision CEO, Bobby Kotick’s involvement is personal and not associated with his role as head of one of the largest video game publishers on the planet.
News Corp paid $580 million for Myspace back in 2005 and had wanted to close a deal valuing the downtrodden social networking site somewhere in the $100 million range but people familiar with the deal say they aren’t likely to get that. News Corp’s acquisition of Myspace will probably go down as one of the worst tech deals in history and at this point it looks as if the company will just be happy to be rid of it.