TechZone360 recently reported that News Corporation was looking to sell social media networking website MySpace by Thursday. It looks as if this day has come a little early, as it was just announced that ad-targeting company Specific Media, one of the main competitors vying for the company will purchase MySpace.
An article on the Wall Street Journal website is reporting that Specific Media will pay $35 million in stock and cash for Myspace, a much reduced price from the $100 million News Corp. was originally looking to offload the site for. News Corp will keep a stake of less than 5 percent in the site, the article stated.
"There are many synergies between our companies as we are both focused on enhancing digital media experiences by fueling connections with relevance and interest," said Tim Vanderhook, chief executive of Specific Media, in a statement. "We look forward to combining our platforms to drive the next generation of digital innovation."
News Corp. purchased MySpace in 2005 for $580 million at a time when the website was thriving and users were growing by the day. However, News Corp. watched their new acquisition go from being ranked as the biggest social-networking site to almost complete nonexistence, totally trampled by Facebook.
As part of the newly formed agreement, Specific Media will pay MySpace with a much larger amount of equity than cash, according to an unnamed source.
MySpace CEO Mike Jones said in a statement he will be stripped of his title right away, but he will take on a guiding role and continue working with News Corp. and the Specific Media until the end of the summer. "I am not running from the building by any means," Jones commented.
Just yesterday, MySpace started the arduous process of firing over half of their current staff, around 500 individuals.
TechZone360 Web Editor
To hear the current FCC talk about it, 5G mobile service is the be-all and end-all of not only mobile communications, but the answer to most of the co…
mCart by Mavatar announces the launch of the world's first blockchain-based decentralized mCart marketplace by the FX Group.
Federal judge Richard Leon gave the $85 billion deal the green light today - and without any requirements to sell off any parts of the company. He als…
There are now thousands of blockchains, and unless you are a cryptophile, you won't recognize most of them.
Ribbon Communications tells its story at Perspectives18.