Myspace Sold for $35 Million with ‘Significant Reduction’ of Staff Imminent

  • Share
  • Read Later

Myspace has been purchased by an advertising outfit called Specific Media to the tune of $35 million, reports All Things D.

The once-ubiquitous social networking site was acquired by News Corp. back in 2005 for $580 million, with All Things D adding that the $35 million sale price “is well below the $100 million that News Corp. had been hoping for and a chasm away from Myspace’s one-time billion valuation.”

In an apparent memo to Myspace employees obtained by TechCrunch, CEO Mike Jones relays the following:

“In conjunction with the deal, we are conducting a series of restructuring initiatives, including a significant reduction in our workforce.  I will assist Specific with the transition over the next two months before departing my role as Myspace CEO.”

The “significant reduction” will amount to laying off half of the team at Myspace, from 400 employees to around 200, says All Things D, adding, “as well as other cost cuts.”

(LIST: 5 Failed Social Networks Even Worse Than MySpace)

In its heyday, Myspace boasted over 100 million users but as recently as February of this year was estimated to count just shy of 63 million members among its ranks. Facebook, by comparison, may have eclipsed 750 million users recently.

It’s not entirely clear what Specific Media plans to do with Myspace, despite a buzzword-laden press release that reads as follows:

“Specific Media, a digital media company, today announced it has acquired Myspace from News Corporation. As part of the agreement, News Corporation will take a minority equity stake in Specific Media. Additional terms of the agreement are confidential and will not be disclosed.

‘Myspace is a recognized leader that has pioneered the social media space. The company has transformed the ways in which audiences discover, consume and engage with content online,’ said Tim Vanderhook, Specific Media CEO. ‘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.’

Specific Media is an innovative global interactive media company that enables advertisers to connect with consumers in meaningful, impactful and relevant ways. Founded in 1999 by brothers Tim, Chris and Russell Vanderhook, Specific Media is currently headquartered in Irvine, CA and operates offices around the world.”

So prepare for synergies, enhanced digital media experiences, and connections fueled by relevance and interest.

MORE: MySpace Costs News Corp. $275 Million In Just Three Months