Online advertising firm Specific Media announced it has acquired MySpace for $35 million in cash and stock. Back in 2005 the social networking site was bought by News Corp for $580 million.
Specific Media, a digital media company, today announced its acquisition of Myspace, a leading social networking destination for consumers, celebrities and artists. As part of the deal, Emmy and Grammy winning artist Justin Timberlake will also take an ownership stake and play a major role in developing the creative direction and strategy for the company moving forward. Specific Media and Timberlake plan to unveil their vision for the site in an exclusive press conference 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,” says Timberlake. “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.”
Myspace has created a robust social networking infrastructure that connects people with the artists and content they love. Specific Media and Timberlake plan to evolve Myspace into the premiere digital destination for original shows, video content and music.
Specific Media will also leverage the Myspace social networking infrastructure to deploy socially-activated advertising campaigns, enabling brands to turn their campaigns viral by allowing users to share their favorite ads with friends.
Brothers Tim, Chris and Russell Vanderhook founded Specific Media in 1999 to address the needs of the burgeoning online advertising space. Since then, the company has developed into one of the world’s largest online advertising companies, with capabilities spanning addressable advertising, original programming and cross-media distribution. By bringing its advertising technology and Fortune 500 client base to Myspace, Specific Media is creating a digital hub where consumers, content and brands connect based on mutual interest and relevance.
“We’re thrilled about the opportunity to rebuild and reinvigorate Myspace,” said 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."
As part of the agreement, News Corporation will take a minority equity stake in Specific Media. Additional terms of the agreement are confidential and will not be disclosed.