MySpace sells for peanuts
Once valued as high as $1 billion, the struggling social-networking site gets a deal for only $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.
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.
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
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.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The solid report comes a month after the retailer closed all of its Canadian operations.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.