MySpace has been troubled ever since the rise of Facebook. News Corp bought MySpace expecting revenues of $1 billion per year, but is now looking to sell it for less than $100 million.
MySpace.com screen grab
A representative for Specific Media could not be reached for comment. Golden Gate Capital declined to comment.
The deal is likely to be a mix of cash and stock for less than $100 million.
While Specific Media and Golden Gate Capital are close contenders, other bidders are involved in the process including Myspace co-founder Chris DeWolfe in a partnership with Austin Ventures; Criterion Capital Partners, which bought social media site Bebo from AOL; and Activision Blizzard Chief Executive Officer Bobby Kotick, according to the source.