Investors Ask Activision CEO To Join MySpace Acquisition Pitch
June 13, 2011 at 10:49 AM (PT)
ACTIVISION BLIZZARD INC. CEO BOBBY KOTICK has confirmed to the L.A. TIMES that he has been approached by a "dark-horse group" to "make a small investment" in the acquisition of MYSPACE from NEWS CORP. RUPERT MURDOCH's conglomerate wants to sell the struggling music social network its fiscal year ends JUNE 30th.
KOTICK hasn't made up his mind on becoming part of the deal; he would only be investing on his own and not as ACTIVISION, and wouldn't be involved in MYSPACE's future management. Besides this dark-horse investment group, other finalists for MYSPACE include VEVO, co-Founder and former CEO CHRIS DEWOLFE, and an internal group led by current MYSPACE CEO MIKE JONES.
No longer an Internet phenomenon, MYSPACE has turned into a money pit for MURDOCH, as the business division that includes MYSPACE lost $165 million in its most recent quarter due to lower advertising and search revenues. Furthermore, 37 million visited MYSPACE in APRIL, down from 69 million a year earlier, according to COMSCORE INC.