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MySpace Sold! Specific Media is the *Winner*

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By: Corey Tate
June 29, 2011
 
The MySpace sale has been completed and the winner is ... Specific Media! The MySpace sale went for $35 million and is being wrapped today, according Kara Swisher at AllThingsD.

Rumors of the MySpace sale being close to done surfaced yesterday, with advertising network Specific Media and private equity firm Golden Gate Capital being in the lead for a sale that's thought was thought to be between $20 million and $30 million. NewsCorp originally bought MySpace for $580 million and it was rumored as being shopped around at $100 million.

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Specific Media is thought to be focusing on MySpace Music for the future, as it's clear that MySpace has lost the social networking battle to Facebook, and MySpace Music is the only good ticket on the site. It's not clear how a MySpace sale will affect MySpace Music licensing deals.

AllThingsD reports that there could be MySpace layoffs, with "up to 50 percent or more" of the remaining staff might be on the line, depending on who buys MySpace.

Rumors of a MySpace buyer in the past included offers from Thomas H. Lee Partners, Redscout Ventures and Criterion Capital Partners LLC, an unnamed Chinese Internet company, and VEVO, and even the site's founder Chris DeWolfe.

MySpace was always the musical destination to be on in its heyday (remember when bands would skip making their own web site and just do a Myspace site instead?), but has been in decline, sliding down a slippery slope of traffic drop offs and falling revenue as the site stagnated after the purchase of the site by NewsCorp back in 2005. It was hailed as a digital coup in its time, and made people consider Rupert Murdoch as an online mogul, but a failure to upgrade MySpace and MySpace Music (before it was too late) led to the site becoming more of an online ghetto.

 
Tags: MySpace, Digital Music News
 
 
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