Myspace Sold for a Measly 35 Million to Ad Company

June 29, 2011{ 5 Comments }

Purchased For 580 million in 2005. Sold for 35 million in 2011.

The day has finally come. The failing social media and music giant, Myspace, was purchased by advertising company Specific Media as of Wednesday July 29th. Even at such a cut-rate deal, buying a company that is failing as fast as MySpace is risky business.
It’s not yet clear how the advertising network will use MySpace. (I’d say it has something to do with advertising.)

What will this mean for artists and users who still use the service? Get your lifeboats ready! Or better yet, build your own website where you have complete control and don’t have to worry about bad business decisions and pop-up ads. But that’s just my opinion.

In recent years people have been abandoning Myspace in droves and migrating to Facebook and Twitter. It’s hard to imagine that an Ad Network could do anything for Myspace besides put more ads on it.

Mike Jones, Myspace CEO had this to say in a press release:

Today, we are announcing that Myspace will be acquired by Specific Media, one of the world’s leading online media and advertising platforms. Over the next few days you will be hearing from the team at Specific, including their CEO, Tim Vanderhook, regarding their exciting plans for Myspace and how it fits in with the overall vision of their company.

In conjunction with the deal, we are conducting a series of restructuring initiatives, including a significant reduction in our workforce. I will assist Specific with the transition over the next two months before departing my role as Myspace CEO.

Do you still use Myspace? What do you think Specific Media has planned?

References

All Things Digital: Exclusive: Myspace to be sold to specific media at 35 million

Mashable Myspace Sold to Ad Network for 35 Million

Sell Your Music Anywhere and Everywhere Online with CD Baby

  • http://www.facebook.com/tonylkollman Tony L. Kollman

    MySpace is now even more dead than it was. I just a post on Tom Anderson's Facebook page today in which he mentioned he didn't like the new MySpace either. Now that it's been purchased by an ad company, get ready for even more ads and spam. I'm rethinking my decision to keep my band's profile. But, I'll wait and see what happens.

    Purchased for $580 million —-> sold for $35 million. Epic fail. MySpace is dead.

  • http://twitter.com/wholemusician wholemusician

    "…a series of restructuring initiatives, including a significant reduction in our workforce." Sounds like a good opportunity for the lifeboat industry.

    • http://members.cdbaby.com CD Baby Admin

      No golden parachutes.

  • Rreiley

    I loved it. And I wanted to keep loving it. But over a year ago I gave up. Bloated, filled with no relative content and taking forever to load. Sort of sorry to see it go but it seemed like this was the long slow plan of death all along.

  • http://members.cdbaby.com CD Baby Admin

    We'll check it out.