Myspace: News Corp Sells for Only $35 Million, Justin Timberlake Part of Purchasing Group

Category: / Jun 30, 2011 9:31AM EDT
Justin Timberlake didn’t seem to get his fill of social media starring in the movie ‘Social Network,’ because he teamed up with Specific Media to buy MySpace yesterday for $35 million dollars. Timberlake, who played Napster co-founder Sean Parker in the boxoffice smash ‘Social Network’, a movie about facebook, joined Specific Media in buying its drowning rival Myspace from News Corp in a deal that closed Wednesday. According to Fox News, Timberlake will have an office at MySpace’s Beverly Hills headquarters and a staff of about a half dozen people working ‘around the clock’ developing his ideas for the site. The partners are excited to have Justin on the team because they hope the singer turned actor will revitalize the site and help transform it into a destination for original shows, video content and music. News Corp. sold its social-networking website Myspace to Specific Media, an online advertising firm, for around $35 million, which was just 6 percent of $580m it paid for the then biggest name in social media in 2005. Google signed a $900 million deal in 2006 to sell ads on Myspace. Myspace had 300 million registered users and was being valued at $12bn by 2007, but the company was subsequently crushed by present social networking giant Facebook, which launched a year after Myspace. News Corp. was reportedly looking for $100million, but Specific Media, which emerged as a front-runner for the site only in recent days, will pay $35 million in cash and stock for the site, according to sources.