Rumours have been spreading all over since the start of the year of MySpace making lots of losses and could be sold at much cheaper price.
Finally, yesterday we witnessed the acquisation of Myspace, a once leading social networking destination for consumers, celebrities and artists at merely $35 Million.
Specific Media, a digital media company from California, announced that it had partnered with American singer-turned-actor Justin Timberlake to buy Myspace from Rupert Murdoch's News Corporation. The company was more interested in collecting the details of users to provide a new target audience for its advertisements.
Justin Timberlake will play a major role in developing the creative direction and strategy for the company moving forward. Specific Media and Timberlake plan to unveil their vision for the site later on.
Myspace was once the biggest social media kid on the block; News Corporation bought the company for $580 million in 2005 and in 2007 there were reports that analysts had predicted a revenue turn over of $1 billion by 2010. But with the growing, or rampaging, popularity of Facebook, Myspace steadily lost commercial viability. Word is that News Corporation wanted $100 million for the ailing social networking site when it put Myspace up for sale this year, roping in investment bank Allen & Co to find a buyer, but settled for 65% less when it sold to Specific Media and the Timberlake.
So long Myspace