MySpace Sale Update –

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.


MySpace: FOR SALE?

An inside source at MySpace disclosed to news sources that over a third of its staff is to be cut in the coming days. At the same time, MySpace may be sold (there are currently 2 bidders) and News Corp is trying to get this deal done by Thursday (!) to make quarter end.  News Corp wants $100 Million (really), but realistically, the bids will be much lower.

Stay tuned…!  In other news…

Over 150 members of staff will be shed this week — according to these insider sources — although the timing has yet to be confirmed with a statement from the company, which is so far not saying anything.

This shouldn’t come as a surprise, with nearly half of its staff being let go earlier on this year. 

Though MySpace is not used by the very vast majority of the Generation Y nowadays, the memories of ‘once was’ will resonate through this entire demographic.

It is hard to think of a time without Facebook, but there was. MySpace filled that gap — with flashing animated GIFs as wallpapers and nothing but user generated content; without the need for definitive expression or linear articulation.

News Corporation acquired a sinking ship when it bought it in the first place. But the Generation Y have since said their short goodbyes to the network in favour of more business-oriented and structured sites — particularly Facebook and LinkedIn.