News Corp flogs MySpace for chump change

by Steven Mostyn - Jun 29 2011, 20:04

Once the top dog of the social networking scene, News Corp’s MySpace has recently slipped down the pecking order of popularity against the likes of Facebook and Twitter.

And so, with the all-conquering Google preparing to launch its Google+ social platform upon the world, it’s perhaps no surprise to see News Corp cashing in and shipping out on its fading force.

More pointedly, “a person with knowledge of the auction” has told Bloomberg that Murdoch & Co. have this week flogged MySpace to California-based online advertising network Specific Media for $35 million USD.

According to Bloomberg’s whispering source, the deal will see News Corp. keep a tentative toe dipped in the social networking market thanks to retaining a five percent stake in MySpace regardless of its sale.

Specific Media’s purchase price of $35 million USD is a far cry from the $100 million USD the News Corp was supposedly fishing for—and is even further from the whopping $580 million USD the corporation paid in 2005 when MySpace led the field.

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