Closing another chapter on one of the Internet’s most iconic properties, Myspace has been sold to Specific Media, an advertising network, for $35 million.
CEO Mike Jones will be leaving the company, and it seems that so will a good portion of the staff.
Says Jones in an email: “In conjunction with the deal, we are conducting a series of restructuring initiatives, including a significant reduction in our workforce. I will assist Specific with the transition over the next two months before departing my role as MySpace CEO.”
News Corp. declared it was ready to sell MySpace in an earnings call in February. The media company was reportedly hoping to get $100 million out of the sale.
In 2005, News Corp. bought the site for $580 million from its original owners, but MySpace’s traffic has plummeted in recent years. All Things Digital reported that News Corp will keep a 5-10% share of the company, though the deal is not yet finished. There are no reports, as of yet, as to what Specific Media plans to do with the site, the brand or the company, but chances are that this will simply be another outlet for its advertising inventory.
Specific launched its video advertising product earlier this month after an acquisition of BBE in 2010. Since that time, the company has been somewhat quiet on any consumer-facing news, but this will surely change that fact.
We’ll keep an eye on the acquisition for any surprises, but I don’t expect them at this point. The $35 million purchase is simply a property grab, where Specific Media will be able to own an entire network for its advertising products.
Complete data shows roughly 31 million unique visits to MySpace last month. You can bet that the site has at least three times that in actual number of profiles. In short, with roughly 100 million user profiles on the site, Specific Media just bought a massive amount of personal data for about $.50 each. What a bargain!