MySpace Sold for Massively Discounted $35 Million

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MySpace has now been sold for a relatively paltry $35 million.

The buyer is advertising network Specific Media, according to information now confirmed by MySpace. A formal announcement was issued shortly before noon (PCT) on Wednesday, and MySpace CEO Mike Jones has also confirmed the purchase internally (along with his own departure; see letter below).

As part of the agreement, News Corporation will assume a minority position in Specific.  Other terms were not disclosed, though Justin Timberlake has actually been confirmed as a stakeholder and advisor moving forward.  “MySpace is a recognized leader that has pioneered the social media space,” said Specific Media CEO Tim Vanderhook, one of three co-founding brothers. “The company has transformed the ways in which audiences discover, consume and engage with content online.”

Of course, the sticker pales in comparison to the original purchase price of $580 million – in 2005 – and also comes well below the $100 million tag rumored to be sought by News Corp.

___ _____ _____ _____

From: Mike Jones

Sent: Wednesday, June 29, 2011 11:26 AM

To: Myspace All

Subject: IMPORTANT COMPANY NEWS

Myspacers,

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.

In conjunction with the deal, we are conducting a series of restructuring initiatives, including a significant reduction in our workforce. I will assist Specific with the transition over the next two months before departing my role as Myspace CEO.

I wanted to take a minute to thank you all for the incredible experience it has been to lead this company and to work closely with all of you over the past several years. While I regret we won’t be working together at Myspace any longer, I am very proud of the work we have done here and believe we have performed with excellence — even under extremely difficult circumstances.

My time here at Myspace represents the most engaging and challenging time of my professional career. I have found our team to be comprised of the best people I have come across in our industry.

You can read the press release below. Once again, thank you for all of your hard work and dedication.

Thanks,

-M