News Corp. has finally unloaded the fledgling MySpace to Specific Media for $35 million. The amount Rupert Murdoch’s News Corp. purchased it for was $580 million six years ago. News Corporation will also keep a minority stake in the company though the ownership stakes owned by each company and Justin Timberlake is unknown.
Myspace, an old social networking favorite, is focused on entertainment. As part of the new deal, Justin Timberlake will ‘take an ownership stake and play a major role in developing the creative direction and strategy for the company moving forward,’ according to a Specific Media press release. The singer saying ‘I’m excited to help revitalize Myspace by using its social media platform to bring artists and fans together in one community.’
During January, Myspace reduced staff by 47% with around 500 staff members losing their jobs. It is expected that at least 150 employees will be removed from the company with a further 150 employees put on a transition plan, where they can continue working for a few extra weeks while finding a new job.