News Corp sells off MySpace for $35 million

Darren Allan

June 30, 2011

It’s been no secret that Rupert Murdoch has been looking to unload MySpace for some time now.

Clear signals and noises were made at the start of this year that News Corporation was examining its “strategic options” with the outfit, which included a potential sale or merger.

When Murdoch bought MySpace in 2005, it was the socially dominant network and the big thing of the time, although unfortunately the next big thing came along, Facebook, and snaffled its success and potential user base.

MySpace has done nothing but dwindle in popularity over the last few years, and attempting to reposition it as a content-led social entertainment site hasn’t made much difference.

Today, Murdoch has finally flogged off the dead (or at least dying) social weight, but for a fraction of what he paid for it.

In 2005, he forked out nearly $600 million for MySpace, with the sale price rumoured to be around the $35 million mark. Not much more than 5% of what he paid for it.

The buyer? Specific Media, an online advertising firm which Justin Timberlake is apparently connected to – he’ll be involved in developing the business from here on out.

MySpace is obviously a much smaller operation than it was back in its heyday, in fact it’s a much smaller operation than it was back at the start of 2011, when the firm shed 500 jobs as part of Murdoch’s cost-cutting measures.

Exactly what Specific Media plans to do with MySpace, the company is keeping tight-lipped about.

Ironically, Timberlake starred in The Social Network movie, which showed the controversial gestation and rise of Facebook to eclipse MySpace. He played Sean Parker, the Co-founder of Napster who got involved with Zuckerberg and Facebook in the early stages of the company’s growth.






 

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