The Wall Street Journal reports today that the older social network MySpace has been sold to an ad-targeting firm called Specific Media for $35 million. News Corp., the previous owner of MySpace, had been hoping to gain $100 million from the social network – only to be disappointed with less than half of that amount. Back in 2005 News Corp. bought MySpace for $580 millon, but successfully made all of that money back using Google’s advertising when they got a good deal on it; however, this was back when the social network was not losing to Facebook.
The deal with News Corp. also includes reducing the staff—which currently numbers 400—to 200 as they are no longer needed and would certainly cost too much to support. As a side note, News Corp. hopes to complete the sale of the site before the end of the fiscal year, which is tomorrow.
Back in October of 2010, MySpace hoped to please their members with a full redesign of the website. This, however, failed, and left them to the only choice of selling the site before it falls further.