News Corp. Offloads MySpace

LOS ANGELES/IRVINE: California-based digital-media firm Specific Media has acquired Myspace from News Corporation, with musician and actor Justin Timberlake taking an ownership stake and gearing up to play a "major role" in the future of the social-networking site.

News Corp. sold off the struggling property to Specific Media for a reported $35 million, after shelling out $580 million six years ago to acquire what was then the leading social-networking site. As part of the deal announced yesterday, News Corporation will take a minority equity stake in Specific Media.

Specific Media says it will unveil details of its new vision for Myspace together with Timberlake later this summer. Currently mostly used by musicians to connect with fans, Myspace will be turned into a digital destination for original shows, video content and music, Specific Media said.

“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," said Timberlake. "Myspace has the potential to be that place. Art is inspired by people and vice versa, so there’s a natural social component to entertainment. I’m excited to help revitalize Myspace by using its social media platform to bring artists and fans together in one community.”

“We’re thrilled about the opportunity to rebuild and reinvigorate Myspace,” added Tim Vanderhook, CEO of Specific Media. “We look forward to partnering with someone as talented as Justin Timberlake, who will lead the business strategy with his creative ideas and vision for transforming Myspace. This is the next chapter of digital media, and we are excited to have a hand in writing the script."