* Two lead bidders -- Specific Media, Golden Gate Capital
* Deal is likely to be under $100 million - source
* Myspace to cut more than half of its jobs - source
(Adds more details about bidders, Golden Gate declined to
NEW YORK, June 28 News Corp (NWSA.O) is
expected to sell the troubled social media site Myspace in the
next two days, according to a source familiar with the
Two front-runners have emerged in the auction process:
online ad company Specific Media and private equity firm Golden
Gate Capital, the source said.
A representative for Specific Media could not be reached
for comment. Golden Gate Capital declined to comment.
The deal is likely to be a mix of cash and stock for less
than $100 million.
While Specific Media and Golden Gate Capital are close
contenders, other bidders are involved in the process including
Myspace co-founder Chris DeWolfe in a partnership with Austin
Ventures; Criterion Capital Partners, which bought social media
site Bebo from AOL AOL.N; and Activision Blizzard (ATVI.O)
Chief Executive Officer Bobby Kotick, according to the source.
Additionally, more than 50 percent of Myspace's 500-strong
workforce is expected to be laid off because of the sale.
The deal is expected to be sealed on the heels of the Sun
Valley conference, the annual gathering at an Idaho resort of
media and technology moguls, as well as a host of other U.S.
and international luminaries.
News Corp paid $580 million in 2005 for Myspace -- once a
pioneer of the social networking space -- but soon lost ground
to Facebook, now the world's No. 1 social networking site.
Last year, News Corp relaunched Myspace as a social
entertainment site with a focus on music, movies and
The news of the front runner and timing was first reported
by News Corp-owned AllThingsD.
(Reporting by Jennifer Saba and Megan Davies. Editing by