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MocoSpace Eyes A MySpace Purchase

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We now have a confirmed interested party in MySpace, which News Corp (NSDQ: NWS). publicly said was up for sale this week: Mobile social network MocoSpace is telling various media outlets that it has approached News Corp. about buying the property.

The two companies could theoretically match since they’re both social networks with large mobile bases; MocoSpace has 16 million mobile users, while MySpace harps big mobile usage numbers. A problem may be price: MocoSpace has raised $10.5 million in funding from backers including Softbank Capital, while MocoSpace CEO Jason Siegel says News Corp. wants to sell MySpace for between $50 million and $200 million.

But Siegel says he does not believe it will be difficult to raise money to buy MySpace, and News Corp. has said it’s open to various options for loosening its ties to the property that might not involve an outright sale. Those options may just include trading its ownership of MySpace for a stake in an up and coming service. MocoSpace, perhaps?

One Response to “MocoSpace Eyes A MySpace Purchase”

  1. The big question is why? The next question is how? Why even float rumours like this? A company that raised $10m is going to pay with what? Patricoff IOU’s on post-it notes? You;ve got to be kidding.