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News Corp reveals just how much it lost on MySpace

MySpace - offloaded at a bargain price
MySpace - offloaded at a bargain price

News Corp's financials are in and with it the company has revealed just how much it lost on the sale of MySpace.

The results were a mixed bag for a company that has had a number of upsets in recent weeks, including a hacking scandal which lead to the closure of the News Of The World and also meant the company had to back down on its bid to take full control of BSkyB.

Before the hacking scandal, however, the company had also sold MySpace off for what has turned out to be a massive loss.

Revenues up

According to reports, News Corp's selling of MySpace lost the company 10 cents a share, which equates to a $254 million (£157 million) after-tax loss.

It actually sold the social network for just $35 million (£22 million), even though it bought it for $580 million (£360 million) back in 2005.

It wasn't all bad news. Despite a 22 per cent drop of earnings in the quarter, News Corp did manage to post better than expected revenues (11 per cent) and has upped its dividend as a result.

Via Wall Street Journal