The, at once time, be all of end all websites, has certainly seen a downfall as of the past couple of years.

The lay-offs affect about 500 employees, or 47 per cent of the company, and come after weeks of speculation on technology blogs about the cuts.

People close to MySpace's owner News Corp have said privately that the media giant is not involved in sales talks.

However, shrinking MySpace's losses will be key in attempts to shop it to would-be buyers like private equity firms or even Yahoo, according to some reports.

News Corp is exploring all options for MySpace, including a sale, company spokesman Chase Carey said in November.

Wouldn't that be something if Facebook bought MySpace? So long as they didnt' give 12 year olds the ability to put bright pink text on see-through rainbow backgrounds I might be okay with this.