MySpace News Corp. agreed to sell 24 million Euros (35 million), a fraction of what you paid for what was then one of the sites most popular social network, although a new generation of fledgling Internet companies enjoys exorbitant valuations.
The online advertising company Specific Media acquires Myspace in a deal that ends a tumultuous period under the ownership of News Corp., Rupert Murdoch, who bought MySpace for $ 580 million (about 400 million euros) in 2005.
At the time, MySpace was one of the most popular sites on the net, and the success of News Corp. to overcome his rival Viacom Inc. in a bidding war for the firm was seen as a major victory for Murdoch.
However, since Facebook has been eclipsed in popularity by MySpace and the agreement became a harsh lesson of what can happen when a traditional media company imposes its mark on a fledgling company.
It also shows how quickly the tastes of the audience – and investors – may change in the social networking world.
Indeed, Wednesday’s agreement contrasts sharply with the current rage for companies social media, including LinkedIn, Twitter and Groupon among investors looking for the latest novelty in the sector.