From $1 billion, to $580 million to this week's $35 million, my_____ (Myspace) has been sold again. News Corp. has sold the once-famous social networking site to Specific Media, an advertising network, for below what they wanted to, and well below what they paid for it. This isn't exactly the death that 24/7 Wall St predicted would happen, but the fat lady hasn't quite sung her last note yet.
The deal will also cut my_____'s staff in half from 400 to 200 employees, along with other obvious cuts. CEO Mike Jones (who?) will stay with the company temporarily through the transition.
For press releases and more, check after the break.
Luckily, News Corp. got this disaster off of their hands before the week was out, which was the end of their fiscal year, so their books wouldn't be in the toilet from day one of the new year. However, after the deal is finalized, they will still hold a small stake in the company.
Reports have it that other bidders involved included founders of Myspace, Chris DeWolfe and Tom Anderson. Strangely, there was also a bid put in that Activision CEO Bobby Kotick was a part of, but unrelated to the Activision brand. As it would turn out, Justin Timberlake is involved with Specific Media and will play a big part in the upcoming plans for my_____. With Timberlake onboard, we should be in store for a mother loving good time!
Why did Specific Media buy the company? They put out the $35 million specifically (ha) for targeted ads and marketing. They will now have access to millions of files of user information that they can now use to create a media company with its own ad space as opposed to targeting certain sites and then selling ad space as a middle man.
Press release from Specific Media.
Internal memo from CEO Mike Jones.