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