News Corp., which is attempting to sell once-dominant social networking site MySpace, has distributed forward-looking documents to potential suitors, and even then the picture isn’t pretty, according to documents obtained by TechCrunch on Tuesday.

MySpace, which was purchased for almost $600 million in 2005 when it was one of the most popular properties on the Internet, is projected in the documents to lose $165 million this year but become profitable in 2012, mainly by slashing expenses.

“Revenue will decrease to $84 million, but expenses will fall from $274 million this year to just $69 million [in 2012]. The company will then be profitable, says the pitch book,” writes a highly skeptical TechCrunch.

The documents do not mention past performance, just future projections, according to TechCrunch, which notes that MySpace is losing audience share with each passing month.

Just five years ago, MySpace was the most-visited Internet property, according to Internet traffic analyst Hitwise, prompting Mashable CEO and prominent blogger Peter Cashmore to write, “Clearly, MySpace was an absolute bargain when NewsCorp bought it for $580 million.”

MySpace cut 500 workers earlier this year, and the Wall Street Journal reported last week that News Corp. is considering further layoffs to make the company more attractive for sale.

It has also been reported that MySpace may be handed over to Internet music giant VEVO in exchange for a News Corp. stake in the project. But until any agreement is finalized, the documents TechCrunch obtained show that News Corp. is doing its best to make the former Internet giant as attractive as possible.