Looks like Friendster can't even sell itself for a small fraction of what was invested. The Deal has the story:

Facing an eroding customer base and dwindling funds, Friendster in November hired Santa Clara, Calif.-based investment bank Montgomery & Co. to shop the Mountain View, Calif. company. But a Friendster spokesman said last week that the sales process has concluded, though he gave no additional details. Montgomery & Co. also declined comment.

'People just didn't find it strategically critical to what they were trying to do,' said one source close to the situation.

The article has a comparison of the leading social networking sites and their unique visitors. In the lead is myspace, facebook and xanga. Friendster is 11th on the list. Jeff Clavier has a screen grab of the stats.

(Found via Mark Brooks.)