Wednesday, June 29, 2011

Specific Media is done with MySpace

MySpace, the social platform on the Internet pioneer, has a new owner. This is the Specific Media company specializing in online advertising, which just closed a deal to buy News Corporation's dot-com for about $ 35 million. Is a peak compared to 580 million dollars (about 437 today) that the media giant paid by the firm for six years and not less than half of what they hoped to raise with the sale.

The operation has advanced the Wall Street Journal, the business daily also controlled by News Corp., on his blog AllThingsD. Pending to know the precise details of the agreement, the conglomerate controlled by Rupert Murdoch managed to retain a minority stake in the social network. Murdoch had since early this year seeking buyer for MySpace, which has become the major victim of the success of Facebook and a drag on its balance sheet.

The change in ownership occurs as they begin layoffs at the company, which will affect half of the 500 current employees of the dotcom. Two years ago, workers of the social network was 1,400. One of the sins of MySpace was not innovating to offer new products that contain the leak of users to Facebook, which is preparing its debut on Wall Street, as Zynga and Groupon.

NewsCorp expected to sell for $ 100 million. Along with Specific Media, also expressed interest in MySpace fund Golden Gate Capital.

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