Myspace Sold to Specific Media for $30million

The social networking site Myspace has been sold to online advertising company Specific Media for about $35 million.  In an official press release by Myspace CEO Mike Jones confirmed the social  networks’s sale to 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.

Myspace

In 2005, News Corp. Digital Media, owned by News Corporation bought Myspace for $580 million. Myspace gained popularity in the US in 2006 and retained its position throughout 2007 and 2008. However, at the end of 2008, Facebook overtook Myspace and brought Myspace ranking down to 80 from 2. Currently, Myspace is ranked 85 in the world according to the three-month Alexa traffic rankings.

In competition with Facebook, Myspace underwent a site redesign last year that intended to help Gen Y users find a “broad array of programming, including originals, exclusives, and content from around the Web.”

In February, News Corp. had  announced that  it was  willing to sell MySpace. The company was reportedly hoping to get at least  $100 million out of the sale, but failed to do so.

Mike Jones will be leaving the company and also confirmed that more than 50 per cent of Myspace’s workforce will be laid off due to the sale.

“In conjunction with the deal, we are conducting a series of restructuring initiatives, including a significant reduction in our workforce.”