MySpace Sells for $35 Million, Justin Timberlake to Play "Major Role" in New Strategy

Social network website MySpace closed another chapter in its tumultuous history Wednesday, as advertising company Specific Media bought the company from News Corporation (NASDAQ: NWSA) for $35 million.

The sale is a deep loss for News Corp., which bought MySpace in 2005 for $580 million. MySpace is known for its meteoric rise in popularity and valuation, only to see its enormous user base leave for competitors like Facebook and Twitter.

MySpace is still used by a niche group of web users, such as musicians and younger creative people.

“MySpace is a recognized leader that has pioneered the social media space. The company has transformed the ways in which audiences discover, consume and engage with content online,” Tim Vanderhook, Specific Media's CEO 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. We look forward to combining our platforms to drive the next generation of digital innovation.”

Notably, musician and actor Justin Timberlake will play a "major role" in the creative direction and strategy of MySpace for Specific Media. He will also gain an ownership stake in MySpace.

Timberlake notes that "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."

Specific Media produces original programming, cross-channel distribution and addressable advertising.