News Corp offloads Myspace for fraction of acquisition price

Media giant News Corp has sold Myspace, the social networking site it acquired for US$580 million (€403 million) for US$35 million. It has been bought by online advertising firm Specific Media, which has given an unspecified equity stake to Justin Timberlake and will work with the pop star to promote the site, the popularity of which has drastically declined in recent years. From a peak of over 300 million users it now has an estimated 70 million.

“I’m excited to help revitalize Myspace by using its social media platform to bring artists and fans together in one community,” Timberlake said.

News Corp acquired Myspace in 2005 and  the following year inked an advertising deal with Google guaranteeing it US$900 million through to 2010. However, the networking site has shed users and staff since the News Corp takeover and is will cost News almost US$500 million in operating losses this year, according to reports in the financial press.

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