News Corp announced on 6/30/2011 that they sold MySpace to Justin Timberlake and Specific Media for $35 million. It was not disclosed as to the amount that Justin Timberlake invested.
Here are some interesting facts about the history of MySpace since News Corp acquired MySpace in July 2005.
- From July 2005 to late 2008, MySpace saw traffic grew from 20 million unique visitors to 70 million + visitors. As of May 2011, MySpace is tracking down and ended the month 30.1 million unique visitors as opposed to Facebook which is estimated at 142.6 million unique and on a upward trajactory.
- News Corp bought MySpace, the social media super star in July 2005 for $655 million ($580 million + $75 million to the founders), but began shopping MySpace around in Feb 2011 for a new owner. It was reported that MySpace will experience an operating loss of $165 million ending fiscal year June 30, 2011. News Corp was expecting to generate offers north of $100 million for MySpace when trying to unload the ailing social network, but accepted an offer for $35 million, or just 6% of the sum News Corp paid to acquire MySpace.
- At its peak Myspace employed 1,600 employees, which was reduced to 1,000 after laying off 30% of its workforce in June 2009. By June 2011, further job cuts reduced its size to 400 employees, with Myspace to lay off at least 150 employees and put another 150 employees on a transition plan in which they can still work for pay temporarily while looking for another job.
- The new owners, Specific Media along with
Justin Timberlake mentioned that they might take the company public in the future if things goes as planned.
- News Corp. shares rose 1.3%, or 22 cents, Wednesday on the Nasdaq stock market to $17.39 after confirming the sale of MySpace.