Specific Media buys Myspace for $35 million

Online ad firm Specific Media has agreed to buy Myspace from News Corp for between US$35 million and $40 million, AllThingsD has reported. News Corp. will continue to hold a minority stake in the social network.

The price is well below the $100 million News Corp was seeking just two months ago, and far from the $580 million it paid for the site in 2005.

However, AllThingsD pointed out that News Corp made back its initial investment through a lucrative advertising deal with Google when the social networking site was still doing well.

In a memo to Myspace employees, outgoing CEO Mike Jones stated that: “In conjunction with the deal, we are conducting a series of restructuring initiatives, including a significant reduction in our workforce. I will assist Specific with the transition over the next two months before departing my role as Myspace CEO.”

News Corp is rushing to close the deal before Thursday, the end of its fiscal year, so the company isn’t on the books for 2012. Its projected revenue for FY2011 is $109 million, while expenses add up to $274 million, according to Venture Beat.

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