Justin Timberlake To Take Ownership Stake in MySpace


Today, we learned MySpace had been sold for $35 million to an advertising network called Specific Media. Now, the company says singer Justin Timberlake will take an ownership stake in MySpace and play a role in its future.

According to MySpace, we should know more about Specific Media’s and Timberlake’s vision for the company later this summer.

“There’s a need for a place where fans can go to interact with their favorite entertainers, listen to music, watch videos, share and discover cool stuff and just connect. MySpace has the potential to be that place,” Timberlake said in a statement. “Art is inspired by people and vice versa, so there’s a natural social component to entertainment.”

Timberlake and Specific Media plan on focusing the site on entertainment, aiming to make it the place to go for original shows, videos and music. They also plan on launching “socially-activated advertising campaigns,” according to the statement, which would let users share their favorite ads with friends.

(keep checking for updates)

MySpace Sold to Ad Network for $35 Million.


The day that the web has been buzzing about has finally come: MySpace has been sold, to an advertising network called Specific Media for a mere $35 million.

CEO Mike Jones will be leaving the company, and it seems that so will a good portion of the staff.

Says Jones in an email: “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. declared it was ready to sell MySpace in an earnings call in February. The media company was reportedly hoping to get $100 million out of the sale.

In 2005, News Corp. bought the site for $580 million from its original owners, but MySpace’s traffic has plummeted in recent years. All Things Digital reported that News Corp. will still hold a 5% to 10% stake in the company.

Other reports this week indicated that close to 50% of the site’s staff could be cut after the sale, and it’s likely that any further iterations of the service will focus on music.

JUSTIN TIMBERLAKE TO TAKE OWNERSHIP STAKE IN MYSPACE