A person familiar with the matter tells the Associated Press that if the sale goes through, /*MySpace*/ will likely lay off more than half of its 500 employees.
At least three bidders are said to be still in the running - online advertising network operator Specific Media, private equity fund Golden Gate Capital and Austin Ventures, an investment fund that is working with MySpace co-founder Chris DeWolfe.
News Corp. CEO Rupert Murdoch once predicted MySpace would make a billion dollars in annual revenue. This year, analysts said the site is expected to make less than one-fifth of that amount.
The Associated Press contributed to this story.