Thursday, June 30, 2011

MySpace Sold Out to Specific Media for $35M

Citing it's continuously plummeting worth, News Corp. has finally sold out MySpace for a meager $35 million way below it's estimated bid of $100 million. News Corp. purchased MySpace, a budding social media mammoth then, for a whooping $580 million in 2005. The deal comes with cutting down the staff strength to half it's current number, i.e., from 400 to 200, including the CEO Mike Jones.

The bidders for the social network included the co-founders of the social network themselves, though separately this time, Tom Anderson and Chris DeWolfe. But the bid finally materialized in the favor of Specific Media, a digital ad service and advertising network on the web.

It is quite likely that the CEO and other higher authorities will stay for an interim period before handing over their positions. Further, estimates say that MySpace's further operations will have a greater orientation towards music-based services citing it's close relationship with music bands and music lovers.

What is your opinion regarding the deal? Will the deal be fruitful for the future of MySpace as well as Specific Media? Will MySpace be able to get back up as it once used to be- A giant social graph? Let in your comments to throw your opinions. Ciao.

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