News Corp. Takes A Bath On MySpace Sale

News Corp.

finally unloaded its floundering MySpace web property today and the price is rather shocking - $35 million. The company paid $580 million for MySpace in 2005, and was hoping to fetch around $100 million for the social networking site. The buyer is a company called Specific Media which will swap cash and stock for MySpace, while News Corp. will retain a less than 5% stake in the site. "There are many synergies between our companies as we are both focused on enhancing digital media experiences by fueling connections with relevance and interest," said Tim Vanderhook, chief executive of Specific Media, in a statement. "We look forward to combining our platforms to drive the next generation of digital innovation." Specific Media was founded in 1999 by Vanderhook and his brothers Chris and Russell, and helps marketers buy digital ads across the Web, online video, mobile and TV. The company currently ranks among the largest online advertising firms in the country, reaching 170.9 million unique visitors in May, which is equal to around 79% of U.S. internet users. As part of the deal, MySpace's CEO Mike Jones will step down immediately, but may take a position on the board of the new company. MySpace will also lay off more than half of its 500 employees. Irvine, California based Specific Media has raised mroe than $110 million in funding and closed a $100 million round of financing from private-equity firm Francisco Partners in 2007.