Lots of scuttlebutt around Silicon Valley that new investment bank CODE Advisors is out pitching a MySpace spinoff to potential buyers and investors. Sources include people who’ve actually been pitched.
CODE Advisor partner Quincy Smith says “We have not been engaged by News Corp. or MySpace on a sale of the company.” MySpace also contacted us to deny the rumor – “The story is false.” – although we hadn’t actually gotten around to asking them yet. Word travels fast, it seems.
MySpace does confirm that they have an ongoing relationship with CODE Advisors to look for companies that they may want to buy, particularly in the music space (they’ve bought two music startups, iMeem and iLike, in the last year). CODE Advisors partner Fred Davis is leading that effort.
But any effort to spin off MySpace from News Corp. – something we’ve argued must be done for the company to have any chance to thrive – is being done unofficially. And perhaps without the knowledge of News Corp. execs.
Are MySpace execs testing the waters to see if there’s a way to spin themselves off of the politics-driven News Corp.? That’s being flatly denied. But it sure would makes a lot of sense. And, like we said, the pitches are happening, whether everyone denies it or not.
MySpace is one of the world’s largest social networks, with about 125 million users. Originally inspired by Friendster, MySpace quickly grew to become the world’s largest social network, before being overtaken by Facebook. User pages are highly customizable and support integration with widgets such as Slide or YouTube. MySpace provides users with a way to connect around content and culture. MySpace was started as a side project of the internet marketing company eUniverse (now called Intermix Media) in August...