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Specific Media buys Myspace for $35m

Ad network Specific Media has acquired faltering social network Myspace from Rupert Murdoch’s holding company News Corp for $35m.

News Corporation purchased the site for $580m in 2005, and while the final price tag for the sale is yet to be confirmed, it represents a significant shortfall on the $100m that News Corp was reportedly looking for from any sale.

US music artist Justin Timberlake will take an ownership stake in the site and the agreement will see News Corp acquire a minority stake in Specific Media. Around half of Myspace’s 500 employees are expected to lose their jobs as a result of the deal.

Timberlake and Specific Media will unveil their plans for Myspace at a press conference later this summer although early indications are that they will continue to focus the website as a destination for entertainment content. Specific Media will also look to use socially-activated ad campaigns that allow users to share their favourite ads with friends.

“We look forward to partnering with someone as talented as Justin Timberlake, who will lead the business strategy with his creative ideas and vision for transforming Myspace,” said Specific Media chief executive Tim Vanderhook. “This is the next chapter of digital media, and we are excited to have a hand in writing the script."

In 2007, Myspace had 300 million registered users and was valued at $12bn but has since suffered in the wake of Facebook’s strong growth. The site has also undergone several rebrands in the last two years, as it looked to re-establish itself in the market.

Josh Colley, London