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WASHINGTON: News Corp. on Wednesday sold Myspace to digital ad-targeting company Specific Media for a reported $35 million, six years after buying the social network for $580 million.
Specific Media said Rupert Murdoch's News. Corp. will take a minority equity stake in Specific Media as part of the deal.
Financial terms were not disclosed but the News Corp.-owned technology blog All Things Digital put the purchase price at $35 million.
All Things Digital also said the deal includes slashing about half of Myspace's staff of between 400 and 500 people.
“Myspace is a recognized leader that has pioneered the social media space,” Specific Media chief executive Tim Vanderhook said in a statement. “The company has transformed the ways in which audiences discover, consume and engage with content online.”
“There are many synergies between our companies as we are both focused on enhancing digital media experiences by fueling connections with relevance and interest,” Vanderhook said. “We look forward to combining our platforms to drive the next generation of digital innovation.”
Specific Media was founded in 1999 by three brothers - Tim, Chris and Russell Vanderhook - and is based in Irvine, California.
Myspace was the leading social networking site when it was bought by News Corp. six years ago but it has since been eclipsed by Facebook.
News Corp. chief operating officer Chase Carey put Myspace on notice in November, saying the losses at the social network were “unsustainable.”
News Corp. does not break out results for Myspace in its earnings but the “other” segment, which includes the social network, reported a second quarter operating loss of $156 million, $31 million wider than a year earlier.
