MySpace sold to advertising firm for $35 million

MySpace sold to advertising firm for $35 million

Summary: Specific Media will buy beleaguered social media site MySpace from News Corp. for $35 million.

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Digital media firm Specific Media is the winner (loser?) in the race to buy beleaguered social media site MySpace, plunking down just $35 million for former Internet royalty, AllThingsD reports.

Specific Media takes the site off News Corporation's hands, which will retain a minority equity stake in the company. The terms were not disclosed.

MySpace CEO Mike Jones acknowledged in an e-mail to the company that he would stay on board for two months before departing, mostly to oversee "a series of restructuring initiatives" that includes "a significant reduction" in the company's workforce.

"I am very proud of the work we have done here and believe we have performed with excellence — even under extremely difficult circumstances," he wrote. "My time here at Myspace represents the most engaging and challenging time of my professional career."

Ironically, Specific wasn't very specific as to what it would do with the site, which has seen users depart in droves over the last couple of years.

All CEO Tim Venderhook would acknowledge was that the companies would combine their platforms; Specific specializes mostly in advertising innovation, so it should be interesting to how Specific tries to monetize what's left of the MySpace user base.

Topics: Hardware, Mobility, Social Enterprise

Andrew Nusca

About Andrew Nusca

Andrew Nusca is a former writer-editor for ZDNet and contributor to CNET. During his tenure, he was the editor of SmartPlanet, ZDNet's sister site about innovation.

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16 comments
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  • RE: MySpace sold to advertising firm for $35 million

    What the Hell is an advertising firm going to do with it? Why the heck does everything online need to be destroyed with excessive advertising?
    The one and only, Cylon Centurion
    • It's called, GREED

      If you don't like it, switch to FOSS. I did.
      ScorpioBlue
      • RE: MySpace sold to advertising firm for $35 million

        @ScorpioBlue
        What's the FOSS alternative to MySpace?
        Droid101
      • Sesame Street

        @Droid101
        Will Pharaoh
      • Is Diaspora Open Source?

        I think it might be, not sure.
        Michael Alan Goff
      • RE: MySpace sold to advertising firm for $35 million

        @ScorpioBlue

        Lol. What? An open source Internet website....?
        The one and only, Cylon Centurion
      • Greed, for lack of a better word, is good

        @ScorpioBlue | @Cylon Centurion :<br><br>What else would have given us GeoCities (first), then MySpace (second), next Facebook (third) and now Twitter (fourth).<br><br><i>"..by directing...in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an <b>invisible hand</b> to promote an end which was no part of his intention....By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it..."</i><br>Adam Smith, <i>The Wealth of Nations</i>
        cosuna
      • Jeez, man...

        He complained about advertizing and it looks like everybody missed the point.

        LOL
        blind obedience
      • RE: MySpace sold to advertising firm for $35 million

        @ScorpioBlue What's foss? Could you give me the link?
        davidfrankk
      • Like Android is not 100% about advertising?

        @ScorpioBlue

        And part of the FOSS world? Another one duped.
        Bruizer
    • RE: MySpace sold to advertising firm for $35 million

      @Cylon Centurion Specific Media is a affiliate based marketing firm - from what I know, they operate networks of networks where they drive ad traffic. MySpace makes sense as it is a network that can be segmented - and add revenue thrown at it. They must make money or trying to roll the dice...if FB is losing memberships, MySpace will be a cyber archaeology site pretty soon.
      geslien
  • Poor News Corporation.

    As I recall, they paid 530 million plus some 5 years ago for MySpace. Microsoft fared much better with their 240 million investment in FaceBook 4 years ago. Their investment is now worth 750 million. But that's still not so hot for a 4 year period.

    I think social networks still can not figure out how to make REAL money. Advertizing just doesn't cut it because most Net verts are eliminated by brower add-ons.
    The Danger is Microsoft
    • RE: MySpace sold to advertising firm for $35 million

      News Corp should have done this 2 years ago and they could have sold MySpace for more than 200 million, I wonder what will happen to other social network companies like Hi5, Friendster, Badoo, Classmates, Tagged, Netlog. Maybe the day the social networks have reached peak has passed, and now investors are trying to see return of investment, but we hope is not too late.
      Gabriel Hernandez
      • Thank GOD!

        @Gabriel Hernandez Social networking should just DIE. There is no reason to share your whole life with the world. Now, if a bunch of USERS want something like this and are willing to group together and do it, fine. NO ONE should "own" it, and it shouldn't be possible to buy or sell. I certainly don't want anything to do with it, OR with all the links on EVERY page out there that say "post to my facebook" or "post to my google...
        janitorman
  • RE: MySpace sold to advertising firm for $35 million

    @Droid101: There are 2 Open Source Facebook competitors I know of... Diaspora and Appleseed. What makes these 2 alternatives different is that they are peer-to-peer (p2p) and our own PCs become the guardian of our own information. No longer can Facebook delete a user's account unreasonably, like it did in my case!
    rykellim
  • RE: MySpace sold to advertising firm for $35 million

    I am Happy to be here! Interested parties can contact a lot!
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    mrmilll