Published Jun 29, 2011It's no secret that MySpace has been struggling in recent years. Once the leading service for musicians to host their music online, an increasing number of bands have made the jump to Facebook, Bandcamp or SoundCloud. In January, the company cut its workforce in half and now it has been sold.
MySpace has been bought by Specific Media for a reported $35 million. Previous owner News Corporation will retain a small minority stake. In a company memo, departing CEO Mike Jones thanked employees for their dedication and promised that the new owners had "exciting plans for MySpace."
Unfortunately for workers, these "exciting plans" include axing many jobs. Jones wrote, "We are conducting a series of restructuring initiatives, including a significant reduction in our workforce." Jones will be departing in two months.
While the future of MySpace is currently uncertain, expect Specific Media to attempt to revitalize the struggling brand. "MySpace is a recognized leader that has pioneered the social media space," said Specific Media CEO Tim Vanderhook in a press release. "The company has transformed the ways in which audiences discover, consume and engage with content online. We look forward to combining our platforms to drive the next generation of digital innovation."
According to AllThingsD, the $35 million price is well below the $100 million News Corp. was seeking. This is also just a fraction of the $580 million that News Corp. paid for the company in 2005. MySpace's 400-person staff will reportedly be cut in half.