News Corp has finally sold the social networking site Myspace to an advertisement firm for only £22 million ($35 million), only 6 percent of the amount they paid for it.
Specific Media, one of the company’s rumored buyers, is the one that signed the line for the acquisition of Myspace. The company also revealed that Justin Timberlake, a popstar turned actor, will take an ownership share in the social network and will be pushing the business’s music side.
“There’s a need for a place where fans can go to interact with their favourite entertainers, listen to music, watch videos, share and discover cool stuff and just connect. Myspace has the potential to be that place,” said Timberlake. “Art is inspired by people and vice versa, so there’s a natural social component to entertainment. I’m excited to help revitalise Myspace by using its social media platform to bring artists and fans together in one community.”
Timberlake, the actor who played Sean Parker in the movie The Social Network, will be playing a major role in the website’s reinvention and will become a part of the site’s day-to-day activities.
News Corp, who also owns the Wall Street Journal, will continue to have a minor 5 percent share in the company even after its sale to Specific Media. Unfortunately, Myspace has slashed its work force by half on Wednesday to cut costs.
Tim Vanderhook, chief executive officer of Specific Media, is confident that the company and Justin Timberlake can turn Myspace’s fortunes around.
“We’re thrilled about the opportunity to rebuild and reinvigorate Myspace,” said Vanderhook in an interview. “We look forward to partnering with someone as talented as Justin Timberlake, who will lead the business strategy with his creative ideas and vision for transforming Myspace. This is the next chapter of digital media, and we are excited to have a hand in writing the script.”
Will Specific Media’s acquisition of Myspace be beneficial to the company in the long run?