MySpace officially sold to Specific Media for $35 million

MySpace, the once mighty social networking web site that is now a shadow of its former self, has been officially sold off by its former owner News Corporation to the advertising company Specific Media. AllThingsDigital reports that the final sale price for MySpace turned out to be $35 million which is slightly higher than previous estimates of between $20 million to $30 million. However it's still well below the $100 million price tag that News Corporation was reportedly looking for at one point.

In an email to MySpace employees that confirmed the sale (and reprinted on TechCrunch) MySpace's current CEO Mike Jones also confirmed he would be leaving the company over the next couple of months as he assists Specific Media on the transition to the new owners. He also confirmed that there would be "a significant reduction in our workforce." AllThingsDigital reports that as many as half of MySpace's 400 current workers could be laid off.

News Corporation bought the once high flying MySpace for a whopping $580 million in 2005. However the site started losing visitors to its biggest rival Facebook and started to lose money for News Corporation. The company wanted to sell off MySpace before the end of June so it could get it off  the books before the end of News Corp's current fiscal year.

As far as MySpace's new owners, Specific Media was formed in 1999 and is one of the biggest providers of online ads with 170 million unique visitors recorded by the company in May.

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Here is the hint for Facebook. It's hardly can cost over $5bln. Large database of active users is all they have.

Kushan said,
Who wants to take bets on how long before this happens to Facebook?
I'm betting my Neowin account. Who wants it?

wv@gt said,
Wait I thought a while back Facebook had merged with Myspace?
Yeah, they did had a deal. It was that, people could log-in MySpace with their Facebook ID, if I remember correctly.

Not Quite Right said,
Nothing makes me happier than to see Rupert Murdoch lose $545,000,000 =)

I know right. It just gives you hope that things might be alright after all.

Not Quite Right said,
Nothing makes me happier than to see Rupert Murdoch lose $545,000,000 =)

Doesn't quite work that way, it's been 6 years for one thing, and they did get some of their money's worth for the first couple years.

While it's not the same as buying a TV for $600 and selling it a few years later for $150 the "loss" you think happened didn't quite happen that way either. Not to mention write-offs, etc.

yowan said,
Facebook could have bought it
Anti-trust committee would have had a heart attack.
Its like Microsoft buying Linux.

FMH said,
Anti-trust committee would have had a heart attack.
Its like Microsoft buying Linux.

Social networks are 10 a penny, Twitter counts as a rival don't forget. Facebook could have bought it, but why bother? How many people do you know that have a myspace account, but not facebook? I'm sure there are one or two, but I seriously doubt there's many. MySpace has no value to facebook.

SpyderCanopus said,
They need completely redo everything. Myspace is just a mess.

It's such a mess, they misplaced the word "space" and had to put a filler in for it until they found it....

You got to remember myspace is still used by a lot of people, and gets millions of unique visits a month. So they can still make a lot of money through advertising. Hopefully they will do something good with myspace [other than shut it down]. You got to remember it is not like facebook, facebook is on a whole other level so people should realise that both companies have grown apart and are heading in different directions. I still go on myspace for the music aspect which it is great for, hopefully they will capitalise on this market area.

DeMo_BR said,
LOL. I wonder what the hell they are gonna do with it.
They would try to make it the next Facebook.

They're an advertising company and they just got the details of everyone who ever used Myspace. Whether that's worth $35m is another question.

Stewart Gilligan Griffin said,
waste of money

Not if they turn it into THE site for discovering new music/talent. MySpace tried to cater to both regular users and bands and it failed on both accounts.