Pop star Justin Timberlake is part of a group that said Wednesday it will buy MySpace from News Corp., a bid to add some cool to a social network that has been losing it for some time.
Timberlake will become a part owner and play "a major role in developing the creative direction and strategy for the company moving forward," according to Specific Media, the company that he will partner with.
The deal is for $35 million, mostly in Specific Media stock, according to a person familiar with the matter. The deal values MySpace at a fraction of what News Corp. paid for the site six years ago and paves the way for the layoff of about half of the 500 workers, the person said. As part of the exchange, News Corp. will receive a private equity stake in Specific Media.
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News Corp. bought MySpace for $580 million in 2005, but users, advertisers and musicians who once relied on it for promotion fled the site for other hotter social networks like Facebook and Twitter. Less than half of MySpace's 74 million monthly visitors are now in the United States, where its visitor count dropped by half in May to 35 million, according to tracking firm comScore Inc.
I honestly don't know why he would touch that sinking ship with a 10 foot pole, but he and his buying partners have to have an idea on what to do now. I think MySpace would work best if they remarket it as a music site where artists can upload music.
I honestly don't know why he would touch that sinking ship with a 10 foot pole, but he and his buying partners have to have an idea on what to do now. I think MySpace would work best if they remarket it as a music site where artists can upload music.
