Before there was Facebook, there was Friendster.
It was the first “true” social networking site, which was later improved upon by MySpace. Now, Friendster is widely seen as one of the most promising ventures that failed, and MySpace just followed suit. The latter is now under the wings of Specific Media.
It was previously reported that singer Justin Timberlake has ventured into some investment with the new owner of the social networking site, which is akin to hearing that Lady Gaga is now in the business of buying Canadian pharmacies. But what is more appalling is the rumor that MySpace has been bought for $35-million, according to Kara Swisher of AllThingsD. Said figure is way below the $100-million asking price of News Corp., and only a minute portion of the $580-million which the latter had paid the once prevailing social network back in 2005.
Talks further go that the deal between Specific Media and MySpace requires the latter to sacrifice half of its current 400-member staff, with the exception of its CEO, Mike Jones, who is bound to stay for a few months more.
The CEO for Specific Media, Tim Vanderhook, reiterated that changes need to take place, since they want to enhance the digital media experience. Them purchasing MySpace is an investment, so they have to combine their respective platforms to boost digital innovation.
Though Vanderhook kept mum on their plans with MySpace, some insiders revealed that it’s going to be geared towards music.
With the involvement of seasoned pop star Justin Timberlake, it is understood that MySpace is set to be the newest venue where music lovers and fans can connect with their favorite singers, watch videos, listen to music, meet, and interact with people. Timberlake mentioned during an interview that he believes MySpace to be the perfect network for both the entertainers and their fans.
Specific Media’s recent announcement has finally put an end to the never-ending rumors that sales proceedings between MySpace and News Corp. are underway. There is no denying the fact that MySpace has gone through a lot of reinventing in the past years—turning it into a music and entertainment portal and even launching it as a partner of Facebook, but to no avail. By January this year, CEO Jones had seen the worst coming. And before they see MySpace turn into ash little by little, they’ve decided to let go and sell.
Over several months, names have been dropped as the potential buyers of the site, which included topnotch investment groups such as CEO Bobby Kotick of Activision, and MySpace co-founders Chris DeWolfe and Tom Anderson.
Finally, Specific Media has been named its new owner—which cunningly got a good bargain in the deal.
MySpace’s Long Fall From Grace