Remember MySpace? It sold for approximately $35 million dollars to marketing network Specific Media last night, down from its original valuation of $580 million dollars when New Corporation brought it 6 years. Though it isn’t the first time a social media is relegated to the “Internet boneyard” and certainly won’t be the last, the story of MySpace was unique for 2 distinctive reasons. First, its acquisition back in 2005 prompted a bidding war between 2 media giants, News Corporation and Viacom. When Viacom, the parent company of Paramount Pictures, MTV, VH1, and such, lost the deal. The company fired Tom Freston, one of the founding member of MTV. The second distinction was just how much resource was at MySpace’s disposal once News Corporation won the bidding war. Its holdings like Fox News, New York Post, and 20th Century Fox have made its chairman Rupert Murdoch not only wealthy but one of the most powerful man in media today. Still, with all his leverage, Murdoch failed to capitalize on MySpace potentials. When Facebook overtook its popularity 2 years ago, MySpace attempted at a rebound several times, from redesigning its layout to its logo. As a last ditch effort, it even added a “Connect with Facebook” button last year.
Though details on the sale to Specific Media weren’t made public, News Corporation will still hold a minority stake in the company. In addition, MySpace’s new owner announced pop star Justin Timberlake will own part of the company and take part in re-vitalizing MySpace. Oh how the mighty have fallen, though it also served as a warning to Google, who launched its Google+ project the day before.