That’s it. The end of a generation.
MySpace has been sold to Specific Media.
What does it mean?
MySpace was certainly not the first social media network. In fact, it stood on the shoulders of some now deceased and defunct social media giants like CompuServe, and America Online. MySpace was the first of a new generation of social media networks. It represented social media for the 21st Century and for a time it seemed poised to dominate the online world. But something happened on the way to their world domination. They stumbled and crumbled and were overtaken and surpassed by Facebook, which seemed more willing and able to innovate and evolve.
What’s next for MySpace?
NewsCorp paid more than a half billion dollars for MySpace in 2005, but sold it this week for just $35 million. There has been no statement from Specific Media about the future of MySpace except that it will likely result in the immediate lay-off of a significant number of people. What will come next, however, is unknown.
Here’s the deal: MySpace still has more than 100 million users, so it’s hardly a complete loser. In the right hands the site could certainly make a come back, or at least retain its current membership. It ahs also carved a niche for itself among musicians and independent bands, so perhaps its future lives on music.
Whatever happens you can bet that MySpace will live on, if only as a lesson to every new web site to come along: You might be the NEXT BIG THING, but that doesn’t mean you will remain it.
Once a rival and competitor to Facebook, the downward spiral of Myspace is no longer the problem of News Corp., or its Chief Executive Offficer Mike Jones, following Wednesday’s announcement that the social network was acquired by digital media outfit Specific Media.
News Corp. paid $580 million for Myspace in 2005, and it was hoping to sell the site for $100 million, but the media giant settled for $35 million, AllThingsD reported.
Under terms of the deal, News Corp. will take a minority equity stake in Specific, and Jones will leave the company following a transition period of about two months. Jones won’t be the only one leaving, however, as he said in his memo to staff, “In conjunction with the deal, we are conducting a series of restructuring initiatives, including a significant reduction in our workforce.”
An exact number of layoffs remains unknown at this point.
In the press release announcing the deal, outgoing CEO Jones says:
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 work force. 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 that 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
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