MySpace Gobbled Up By Specific Media For Very Little Cash

Myspace Sale

Myspace SaleIn 2005 many analysts saw News Corps’ $580 million buyout of social network MySpace as a huge success when the company more than doubled their monthly traffic numberx from 20 million to 70 million users during the first year of acquisition and now just six years later the company has announced the sale of the one-time media darling for $35 million.

The social network was picked up on Wednesday by Specific Media with Specific CEO Tim Vanderhook noting:

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.”

After being purchased by News Corp. the site underwent a major site redesign as they continued to bleed up to 1 million users per month from the company’s highest levels witnessed in December 2008. While new features were added to the network and more emphasis was placed on artists and musicians the company failed to gain the mass appeal they once held.

For their part Specific Media, a digital media company has promised to continue in Myspace’s current direction.

Vanderhook continued: [Read more…]

News Corp. Prepping MySpace For Sale

MySpace Logo

MySpace LogoNews Corp. is currently prepping one-time internet social media darling MySpace for sale and various venture capital firms and other privately held companies are expected to place bids for the entertainment hub.

The website, purchased by News Corp. in 2005 for $580 million has been prepping for sale since the company spoke with shareholders during their February earnings call.

According to Mashable:

The company “recorded a $275 million pre-tax charge for the impairment of goodwill related to the Digital Media Group and an organizational restructuring at MySpace.”

The Wall Street Journal (also owned by News Corp.) is predicting that the site will fetch somewhere in the vicinity of $100 million with several frontrunners vying for the site including Redscout Ventures, Thomas H. Lee Partners and Criterion Capital Partners LLC. Criterion you may recall also owns social network Bebo. [Read more…]

Myspace Execs Plan Exit Strategy, Look To Sell In 2011

Myspace Screenshot

Myspace ScreenshotIt’s official, News Corp., the parent company to Myspace has announced that they will attempt to sell off the one-time social media darling sometime in the next year.

It was predicted that a sale may be imminent when yesterday Myspace announced that 47% of their global work staff (approx. 500 employees) had been laid off.

Myspace CEO Mike Jones has announced that the company will attempt to sell the failing company before it’s too late to salvage.

If a sale doesn’t occur, Myspace’s Rosabel Tao tells Bloomberg:

“News Corp. is assessing a number of possibilities including a sale, a merger and a spinout [sic]. The process has just started.”

The sale has become a more crucial strategy for News Corp. who has been forced to sign a new search revenue deal with Google that offers no guaranteed revenue from searches. Previously MySpace was guaranteed $900 million in search revenue. [Read more…]

Ailing MySpace adds Twitter update functionality

Not long after Facebook added Twitteresque @s to its service, MySpace is offering its users the ability to send real time messages to both MySpace and Twitter, at least for its US members.

“Our new sync functionality is part of an ongoing effort to make it simple for people to share their status beyond MySpace,” a senior product manager at MySpace said.

Just to add to the excitement, updating a Twitter feed can also automatically update a user’s MySpace status. [Read more…]