MySpace Efforts May Have Cost News Corp. More Than Millions

  • ETCentric reported earlier in the week that social networking site MySpace would be sold to Irvine-based advertising firm Specific Media for $35 million in cash and stock.
  • Although News Corp. has claimed that its Google ad deals helped curb MySpace losses over the recent years, others suggest a darker picture.
  • The sale of MySpace for a mere 6 percent of its original $580 million purchase price may be yet another chapter in a disappointing tale, one which started with a failed attempt to build an all-service media empire.
  • Ars Technica suggests that when considering the entire picture, including the operating losses over the years, the MySpace acquisition may have cost News Corp. well over $1 billion (read the article for a breakdown of the math).
  • Specific Media, with Justin Timberlake as a backer, is expected to focus on music for MySpace’s new direction.

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