News Corp reviews future of MySpace

News Corp is exploring strategic options for its MySpace website including a sale or a spinout, the media giant said, a day after the former social networking high-flyer slashed nearly half of its staff.

The media group, which paid some $580 million (366m) for MySpace in 2005, believes a spinout would be the most logical route, according to sources.

That option would probably lead to someone from the venture capital or the private equity community investing in MySpace, thereby altering the current ownership structure.