Wednesday, June 29, 2011
Bubble Reminder: Remember MySpace?So MySpace has finally found a new home. After being acquired by News Corp in 2005 for $580M, when it was the high-flying social networking darling (before Facebook changed the landscape), News Corp was on a tear to sell its acquisition before the end of its financial year according to this Wall Steet Journal story:
Ad-targeting firm Specific Media on Wednesday said it agreed to buy News Corp.'s struggling social-media site Myspace.
Specific Media will pay $35 million in stock and cash for Myspace, according to people familiar with the matter, well below the $100 million News Corp. was seeking for the troubled site. News Corp will retain a stake of less than 5% in the site, the people said.
"There are many synergies between our companies as we are both focused on enhancing digital media experiences by fueling connections with relevance and interest," said Tim Vanderhook, chief executive of Specific Media, in a statement. "We look forward to combining our platforms to drive the next generation of digital innovation."
If you're wondering who Specific Media is? Here's more from this story:
Founded in 1999 by Mr. Vanderhook and his brothers Chris and Russell, Specific Media helps marketers buy digital ads across the Web, online video, mobile and TV.
The company got its start brokering ad space for websites and quickly moved into the fast-growing business of collecting and using Web browsing, demographic, geographic and other profile information about consumers to target ads. The company now ranks among the largest online advertising networks in the country, reaching 170.9 million unique U.S. visitors in May, or about 79% of the U.S. Internet users, according to comScore Inc.
Specific Media, based in Irvine, Calif., has raised more than $110 million in funding, closing a $100 million round of financing from private-equity firm Francisco Partners in 2007. Since then, the company has acquired a couple of digital advertising companies, including online video company Broadband Enterprises and an Amsterdam ad technology company.