NEW YORK ( TheStreet) -- News Corp. said it is exploring a sale or spinoff of MySpace, according to reports, a day after the social media Web site cut almost half its staff.

News Corp. believes a spinoff would be the most logical route, Reuters reports, citing a source familiar with the matter. That option would likely mean someone from venture capital or private equity investing in MySpace, the person said.

Bloomberg reports that Mike Jones, MySpace's CEO, told employees of the future plans for the Web site at a meeting Wednesday.

"News Corp. is assessing a number of possibilities including a sale, a merger and a spinout," said Rosabel Tao, a MySpace spokeswoman. "The process has just started."

Almost 500 MySpace employees across all the company's operations will lose their jobs this month, it was announced Tuesday.

-- Written by Joseph Woelfel

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