Report: Myspace to be Sold to Specific Media for Only $35 Million [Updated]

We knew the fallen social network Myspace was being shopped around on the cheap, but back then, News Corp. was looking for a $100 million offer — still much cheaper than the initial purchase price of $580 million. Now, however, AllThingsD is reporting that the fallen social network has even further to fall, and is being acquired by ad-targeting firm Specific Media for the (comparatively) paltry sum of $35 million.

AllThingsD claims sources say the deal should be closed today, and News Corp. will keep a very small stake in the company, around less than five percent. The deal supposedly includes cutting half of Myspace’s staff of 400, and it is speculated that Myspace’s higher-up staff, such as CEO Mike Jones, will only remain for an interim period.

Remember when Myspace was the king of social networks and people used “Myspace me” just like they use “Facebook me” now? One can only wonder if Facbeook will eventually suffer the same fate.

UPDATE: CEO Mike Jones reportedly sent out an email to employees confirmed the sale of Myspace to Specific Media. Head on past the break to see the email, which also states that Jones is leaving the company.

From: Mike Jones
Sent: Wednesday, June 29, 2011 11:26 AM
To: Myspace All
Subject: IMPORTANT COMPANY NEWS
Importance: High

Myspacers,

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.

I wanted to take a minute to thank you all for the incredible experience it has been to lead this company and to work closely with all of you over the past several years. While I regret we won’t be working together at Myspace any longer, I am very proud of the work we have done here and believe we have performed with excellence – even under extremely difficult circumstances.

My time here at Myspace represents the most engaging and challenging time of my professional career. I have found our team to be comprised of the best people I have come across in our industry.

You can read the press release below.  Once again, thank you for all of your hard work and dedication.

Thanks,

-M

(via AllThingsD, TechCrunch)

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James Plafke