The former vanguard of social networking has been sold for just $35m, a fraction of its once valued $12bn, and low even compared to when News Corporation bought it out for $580m six years ago.
So who’s bought it? Where does Justin Timberlake fit into all this? And what can you expect for its future? Read on for more.
How times change. It was as recently as 2007 that Myspace had 300m registered users and was being valued at an astronomical $12bn. Now just four years later, it’s been sold for $35m to an online ads company called Specific Media. The sale is mainly in stock; News Corporation will retain a small holding.
Justin Timberlake will take an ownership stake, and play a role in the site’s future. In an official statement, he said, “There’s a need for a place where fans can go to interact with their favorite entertainers, listen to music, watch videos, share and discover cool stuff and just connect. MySpace has the potential to be that place. Art is inspired by people and vice versa, so there’s a natural social component to entertainment.”
More than half of Myspace’s 50 member staff are expected to lose their jobs – this follows a 30% reduction in staff in April last year, and a further 47% drop in January.
Launched in 2003, Myspace was once known as the go to place for up and coming musicians. Those propelled to worldwide fame by exposure through the site include Lilly Allen and Kate Nash. Facebook launched a year after and quickly overtook, recently claiming 750 million members. Myspace has now become a byword for barren sites where you’re more likely to see tumbleweed as another person.
The 2008 movie Iron Man saw Robert Downey Jr. pose for a photo, saying, “I don’t wanna see this on your Myspace page.” It’s not something anyone needs to worry about nowadays.
Via The Guardian
