Myspace sold for just $35M to ad network

Myspace, the once-dominant social network that has since been overshadowed by Facebook, has been sold to an advertising network for $35 million —a far cry from the $580M it was valued at in 2005. Buyer Specific Media said News Corp., the Internet property's former owner, will have a minority equity stake in Specific Media. "Today, we are announcing that Myspace will be acquired by Specific Media, one of the world’s leading online media and advertising platforms. Over the next few days you will be hearing from the team at Specific, including their CEO, Tim Vanderhook, regarding their exciting plans for Myspace and how it fits in with the overall vision of their company," outgoing Myspace CEO Mike Jones said in a June 29 memo to employees. In his memo —the text of which was posted on All Things Digital— Jones said they will conduct a series of "restructuring initiatives," including a "significant reduction in our workforce." He thanked the employees for their work, adding his time at Myspace represents "the most engaging and chalenging time of my professional career." "While I regret we won’t be working together at Myspace any longer, I am very proud of the work we have done here and believe we have performed with excellence — even under extremely difficult circumstances," he said. For his part, Vanderhook said Myspace is a "recognized leader that has pioneered the social media space." Specific Media, founded in 1999 by brothers Tim, Chris and Russell Vanderhook, is currently headquartered in Irvine, California. “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," Vanderhook said. 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. Tech site Mashable cited sources who said nearly 50 percent of the site's staff may be cut after the sale. Mashable added it is likely that Myspace may focus on music. All Things Digital noted Myspace had been bought for as high as $580 million in 2005. An entry in the New York Times noted the buying price is well below the $100 million that News Corp. had been hoping for. The New York Times also said Specific Media had brought on board artist Justin Timberlake as a part owner and an active player in MySpace’s future. — TJD, GMA News