MySpace sells for peanuts

Once valued as high as $1 billion, the struggling social-networking site gets a deal for only $35 million.

By Kim Peterson Jun 29, 2011 3:37PM
In this time of outrageous valuations, where anything remotely related to technology is automatically worth billions, one-time hotshot MySpace has sold for a mere $35 million.

News Corp. (NWS) has sold the social media site to an online advertising company called Specific Media. Although the price wasn't announced, the AllThingsD site reports that it was $35 million. That's well below the $100 million News Corp. initially wanted.

At one time, MySpace was worth a cool $1 billion. And News Corp. bought it six years ago for $580 million. Oh, how things have changed.

Check out the following video news report on the deal. Post continues after video:
News Corp. will keep about 5% of MySpace, for what it's worth, but it's laying off about half of Myspace's 500-person team in the sale. Only two years ago, the site employed 1,400. Chief executive Mike Jones said in a memo that he'll be leaving the company in about two months.

Shares of News Corp rose a little more than 1% to $17.85 in afternoon trading as news of the transaction broke. The sale price is relatively meaningless to investors, but at least News Corp gets MySpace off its books now.

Other people wanted a shot at MySpace, including site founders Chris De Wolfe and Tom Anderson, The Wall Street Journal reports. But Specific Media came out on top.

What's in store for MySpace now? Specific Media helps marketing folks buy digital ads, and it now collects information about consumers in order to target those ads better, the Journal reports.

So now, Specific gets a whole bunch of information about MySpace users for its database. It also gets its own advertising space to sell now instead of just helping people buy space on other sites.

29Comments
Jun 29, 2011 4:39PM
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Who cares? It is all vapor ware anyway. Facebook will be next.
Jun 29, 2011 4:36PM
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Oh yea, thats nothing. I burn that much just to heat my home in the winter.
Jun 29, 2011 5:40PM
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The real fools are the people that give up all their personal information to these social websites...Then the freaks come in and rip you off or worse...
Jun 29, 2011 7:27PM
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Moved out of My Space when the neighborhood went ghetto.
Jun 29, 2011 5:45PM
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MySpace is nothing more than a social outlet for preteens and younger who have way too much time on their hands.  Good-bye and good riddance....Facebook, are you listening?
Jun 29, 2011 6:34PM
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I'm sure the decline in MySpace value is directly linked to its lack of security for its clients. I wonder how long before FaceBook follows?
Jun 29, 2011 5:49PM
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The last time I signed in to myspace my antivirus blocked something and showed a threat detected...That was about a year ago or so..Still not completely sure why I ever had an account there...I think someones kid said I had to have it...It sucked then and sucks worse now.......I hear it sucking right down the drain...I agree with Tony facebook will be next. That site is getting so trashy anymore that you need safety glasses and a condom just to get past your news feed. Already I know many people that have ditched facebook.
Jun 29, 2011 7:32PM
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specific media... congratulations, you now have a database containing the personal info of the nations trailer trash and wannabe thug gangsta's.
Jun 29, 2011 8:01PM
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LOL, facebook is next along with all the "I have no life" sites.
Jun 29, 2011 5:00PM
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some people with a lot of money has no brains why would you buy some thing that is going down the drain? news corp was dumb to buy it and specific media is even dumber
Jun 29, 2011 6:39PM
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Nobody is on Myspace anymore.  I haven't signed in to my account in who knows how long.  Everyone I eSocialize with is on Facebook now.  Why pay $35M for an old thoroughbred with two broken legs?  Bad investment!
Jun 29, 2011 7:24PM
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$580 million - $35 million = $545 million loss. Wow, talking about bad loss of money Sleepy
Jun 29, 2011 5:27PM
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socialist BOO, seems like you could use of some that money for a math education:

 

$35,000,000 / 350 = $100,000

 

That's about the average cost of a degree.

Jun 29, 2011 6:52PM
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Myspace is just too...."un-usable" with all the revamping and making it, better, it takes forever for the pages to load and they really aren't that attractive when they do

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Nothing lasts forever unless your Microsoft.
Jun 29, 2011 7:46PM
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I wasn't surprised at the low sale price.

 

I  <b>was</b> surprised Specific Media bought Myspace.

 

I expected Facebook would have bought Myspace, shut Myspace down, and transition those Myspace users who didn't have Facebook accoutns over to Facebook.

Jun 29, 2011 4:45PM
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Wow!  That is NOT $35 million well spent.  For that $35 million, they could have put 350 kids thru college, bought cars for 1400 people so that they could get to work across town (or bought a years worth of bus passes for 58,000 people to get to work), or fed countless people, bought health insurance for 2900 people for a year. Or they could just buy a worthless website.
Jun 29, 2011 7:03PM
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More virus' come through MySpace than the law allows!
Jun 29, 2011 4:49PM
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Lol's just another Media Outlet that was run in the ground by highly edumacated know it alls from the Media....Just like they've done to newspapers, magazines and anything the Media touches...
Jun 29, 2011 8:28PM
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MySpace's downfall was a classic case of over-exposure.  It was cool back in the day when there were only like 20 million people, but now it's crap ...200+ million profiles....  Facebook is on the same path.  It used to only be for college students (18+) looking to reconnect.  Then they changed to just let anyone join.
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