Social network MySpace is sold once again. The buyer is a digital media company Specific Media, which bought the site from News Corp.. As part of the deal, News Corp. will acquire a minority equity Specific Media.
Kara Swisher of AllThingD, who reported this sale, as quoted by CNET on Thursday (30/6/11) said, Specific Media to pay 35 million dollars.
In a statement, Specific Media CEO Tim Vanderhook said, "MySpace is recognized as a leader who pioneered the social media space. The company has transformed the way audiences find, consume, and engage with online content."
"There are many synergies between our companies. And we both focus on improving the digital media experience by combining relevant and interesting connections," said Tim. "We hope that combining our platform to encourage future generations of digital innovation," he continued.
As part of the deal, Swisher said, half the MySpace staff will be reduced. In a memo sent to employees, MySpace CEO Mike Jones to make additional notes about the restructuring initiative, which also announced that he would be leaving the company after two-month transition period.
"When I'm on MySpace is the most challenging moments in my professional career," wrote Jones. "I found our team are the best people I ever find in this industry," he added.
MySpace was bought by NewsCorp in 2005 with a value of 580 million U.S. dollars.
According to Swisher, News Corp. 'equity stake in the Specific Media 5 percent to 10 percent. In comparison, Microsoft is investing 240 million dollars for a 1.6 percent stake in Facebook in 2007.
MySpace has massive redesigning know 2010 and then as an effort to keep pace with the social network Facebook. The redesign includes the additional feature topics being trendy (trending topics) and more media in the profile page for better media integration.
In just a few months after that, the company cut its infrastructure, announced, "significant organizational restructuring", cut 47 percent of its staff, or about 500 employees. This step is mentioned that MySpace can be a target for potential buyers.
During a conference last February, CEO of News Corp.. Chase Carey said, it's time to sell property to buyers new to the Web site is "full potential", and the company can evaluate other strategic alternatives.
Gartner analyst Michael Gartenberg said the sale shows the market how social media can not be predicted and how fast-changing consumer taste. "The fundamental question is where another 550 million dollars?" Gartenberg said.
Based on Compete.com research, visited MySpace 30.79 million unique visitors (unique visitors) in May 2011 last month, down 6.34 percent compared to the previous month. Or down 54.47 percent compared to the year 2010. Now how the new buyer can change the trend? MySpace Gartenberg suggested a focus on roots music.
