News Corp is now seriously considering selling off MySpace which has been draining the company of millions in losses since its $580 million acquisition in 2005.

A spokesperson for Myspace said that “News Corp is assessing a number of possibilities including a sale, a merger, and a spinout,” in an interview with Bloomberg.

News Corp president Chase Carey said that losses of $156 million from MySpace in the last quarter of 2010 were “neither acceptable or sustainable.”

The news comes a day after MySpace sacked half of its staff, around the 500 employee mark, in a massive overhaul of operations.

The overhaul has included a change of direction from the once social networking site toward entertainment to compete with other social platforms.