TECH
04/13/2011 09:01 am ET Updated Jun 13, 2011

The Dreary Numbers Behind Myspace Reveal Site's Losses

The numbers behind News Corp.'s desperate attempt to unload MySpace have been uncovered, and they're not pretty.

According to TechCrunch, which obtained a copy of the pitch book News Corp. is showing potential buyers of the property, the company will lose $165 million in 2011. Expenses of $274 million outspend projected revenue of $109 million, despite huge layoffs at the company.

Yet the pitch book actually projects that MySpace will turn profitable in 2012, with a revenue decrease down to $84 million, and a nearly four factor decrease on expenses to $69 million: presto, change-o, profit.

The book doesn't explain just how MySpace expects it can reduce operating expenses by such a large portion--though it does seem to indicate that the company may be undergoing even more extensive layoffs. As TechCrunch noted, the projected figures represent a cost decrease of 75 percent next to an revenue decrease of the far less dramatic 23 percent.

The book goes on to project revenues of $101 million, $119 million, and $139 million in 2013 through 2015. But such a turnaround seems vastly unlikely if MySpace's traffic continues to freefall as it has--and if News Corp. can't find a buyer, soon.