There are reports that News Corp is to sell the troubled social media site Myspace in the next two days.

Reuters quoted a source familiar with the situation as saying that two front-runners have emerged in the auction process: online ad company Specific Media and private equity firm Golden Gate Capital.

The deal is likely to be a mix of cash and shares for less than $100m. Additionally, more than half of Myspace's 500-strong workforce is expected to be laid off because of the deal.

News Corp paid $580m in 2005 for Myspace - once a pioneer of the social networking space - but soon lost ground to Facebook, now the world's top social networking site.