MySpace has been sold to ad network Specific Media for a reported $35 million.
News Corp, which paid $580 million for MySpace in 2006, had hoped to get as much as $100 million for the struggling social network.
It’s being reported that MySpace will once again, refocus on music, after failed attempts to broaden to a more general entertainment site. Musicians have been moving away from MySpace in recent months, and the new owners will have to make drastic changes to reverse that trend.
The deal includes cutting half it’s staff of 400. MySpace CEO Mike Jones confirmed that he will be leaving the company in a letter to employees.
But there this a sexy factor in MySpace’s future. Justin Timberlake, part owner of Specific Media, is MySpace’s de facto creative consultant as a result of the deal. And his creative energies and contacts could help make MySpace successful again.
Timberlake will have an office, with a six-person staff, and it’s hoped he’ll help reinvent the site and make it a digital hub of entertainment content for millions.
MySpace has been down this path before. It spent the past year or so trying to re-fashion itself as an entertainment hub for 13-to-34-year-olds interested in music, movies, celebrities and TV. But its audience continued to shrivel amid competition from Facebook, Twitter and others.