News Corp. has finally found someone willing to take the failed social network off its hand. It has been confirmed that MySpace has been sold to Specific Media, an online advertising company for $35 million. This acquisition will also result in a lot of layoffs. MySpace’s current CEO, Tim Vanderhook will leave the company in two months.
It was reported yesterday that over 150 MySpace employees would be let go this week.
Although Specific Media owns most of MySpace, News Corp. own a very small portion of Specific Media. According to All Things D, News Corp’s stake is less than 5%.
News Corp. purchased MySpace in 2005 for around $580 million.
Specific Media hasn’t announced what it plans to do with MySpace, but this story has another twist.
Justin Timberlake, (yes, him) also owns a part of MySpace now. He will be involved in the creative direction of the new MySpace. More information on that will be revealed sometime this summer.