Justin Timberlake, Small Ad Company Buy MySpace For $35 Million

MySpace has been sold to a small time advertisement firm for only six percent of the amount that News Corp. paid for it six years ago.

According to the Financial Times the loss-making social networking platform MySpace has been sold by its owner group News Corp. to a digital advertising firm Specific Media, along with musician Justin Timberlake, for only $35 million, Rupert Murdoch's company paid $580 million for it.

“There’s a need for a place where fans can go to interact with their favourite entertainers. I’m excited to help revitalise MySpace by using its social media platform to bring artists and fans together,” Timberlake in an official statement, The Telegraph reports.

News Corp, which also owns the Wall Street Journal, will continue to own a small stake in the company even after the sale to Specific Media. Unfortunately, MySpace on Wednesday slashed its work force of 450 by half to cut costs.

The chief executive officer of Specific Media, Tim Vanderhook has said that the company plans to develop a digital media firm capable of competing with top companies such as Yahoo and Facebook. Although MySpace hasn't been popular for years, and is unlikely to regain its social networking throne, it is a recognizable brand in much of the world.