MySpace was the biggest social networking site in 2006 till it lost its top spot to Facebook in 2008. It later changed its focus to being an entertainment network to survive. Being unable to generate enough revenue still, News Corp finally sold MySpace off to a smaller digital media company, Specific Media on June 29, 2011.
MySpace, another one of Facebook’s victims, is not a success story of Silicon Valley. News Corp was looking to sell it at $100 million, instead had to settle for a sum as low as $35 million.
Commenting on the deal, Tim Vanderhook, Specific Media CEO, said in a press statement, “MySpace is a recognised leader that has pioneered the social media space. The company has transformed the ways in which audiences discover, consume and engage with content online. There are many synergies between our companies as we are both focused on enhancing digital media experiences by fueling connections with relevance and interest. We look forward to combining our platforms to drive the next generation of digital innovation.”
Meanwhile, as per news reports, singer Justin Timberlake has also joined with the global interactive media company, Specific Media, for the deal. The company has headquarters in Irvine, CA and other offices around the world.
As part of the agreement, News Corp will take a minority equity stake in Specific Media, the press statement issued by MySpace stated.