MySpace sold to Specific Media for $35m

Digital content specialist Specific Media has agreed to acquire beleaguered social networking site MySpace from News Corp.

While few terms of the deal were made public widespread reports value the deal at a lowly $35m compared to the price News Corp paid in 2004 of $580m, although News Corp will take a minority ownership stake in Specific Media.

Specific Media chief executive Tim Vanderhook said in a statement the move would help the two companies grow as content becomes increasingly digital.

"MySpace is a recognised leader that has pioneered the social media space. The company has transformed the ways in which audiences discover, consume and engage with content online," he said

"We are both focused on enhancing digital media experiences by fuelling connections with relevance and interest."

Specific Media said it would be looking to integrate its advertising operations into MySpace's music and video operations as well as its social networking platform.

The company added that the addition of MySpace will extend its advertising network by as many as 70 million users.

The deal brings to an end the months-long search to unload MySpace by News Corp. Since its $580m acquisition at the height of its popularity, MySpace has been in a steady decline since News Corp bought the company in 2005.

As rival Facebook dominated the social networking space, MySpace saw massive layoffs and a string of executive departures as the company struggled  to reinvent itself.