The once proud papa

Despite handing out pink slips to almost 40 percent of its employees and putting another 40 percent on a transition plan that will keep them on staff as they look for new gigs, Myspace seems likely to sell for a fraction of the $580 million News Corp paid for it back in the summer of 2005.

The remaining suitors, according to Kara Swisher, are not exactly big names. Specific Media is a five-year-old ad network who would most likely be buying Myspace for its vast collection of user data in order to improve ad targeting.

Golden Gate Capital is the other bidder, a private equity firm that has made its name turning around real stinkers, but has never worked with a social media firm like Myspace before.

Apparently the original founders, Tom Anderson and Chris DeWolfe, are both involved in separate investor groups that threw their hat into the ring. A big piece from Bloomberg Businessweek recently got Mr. DeWolfe on record for the first time about the sale to News Corp. and the sale of the site. He still has a profile, but says he cringes ever time he sees it.

News Corp is desperate to get Myspace unloaded before the end of the month, in order to avoid the companies red ink appearing on its financials for 2012, so expect more news on this sale within the next few days.