News Corporation (NASDAQ:NWSA) had lost $254 million on their acquisition of MySpace said News Corp. This pushed News Corp.’s Q4 net income down 22% to $683 million.
MySpace’s losses during the April-June quarter increased from the previous year. A $614 million annual operating loss in the “Other” division that contained MySpace was due to MySpace’s growing losses.
By the time MySpace was sold, News Corp. was valuing the social network at almost $300 million even when they were trying to sell it for $100 million. News Corp. acquired MySpace for $580 million in 2005 and sold 95% of MySpace for roughly $35 million this past June.