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MySpace Is Now Specific Media's Problem — or Advantage

ADOTAS – It’s official: MySpace is now Specific Media’s problem. Oh, and actor/singer Justin Timberlake’s, who also took an ownership stake and apparently is going to drive the creative vision for the company. He sings, he dances, he acts, he produces and he guides forlorn social networks back into popular use — is there anything the curly-haired wonder boy can’t do?

Specific may have bought a real jalopy, but depending on how well the social network is fixed up, it could be a boon for the ad network.

It’s fitting that the acquisition news is all over the web on Social Media Day, but Thursday, June 30 also marks the end of News Corp.’s fiscal year — it’s understandable that Rupert Murdoch didn’t want that revenue black hole on his balance sheet anymore.

Originally acquired for $580 million, MySpace was pretty much given away for $35 million – when it first appeared on the auction block, News Corp. was seeking a laughable $100 million. Actually I’m a little surprised News Corp. didn’t pay Specific Media to get rid of it, though News Corp. is taking a minority equity stake in Specific.

The layoffs came quickly (I can’t believe people would be working for MySpace without an updated resume), with about half of the 400-500 employees getting the ax. How many rounds of layoffs (and CEO-oustings ) have we seen during the  long, slow, depressing decline of MySpace ? I remember being surprised in the last two years any time I received a hiring announcement from MySpace.

The decline really stemmed from News Corp.’s takeover in 2005 and at its heart were display ads. The parent company was making hand over fist in revenue from chintzy display ads and a deal with Google to power search and contextual ads, but at the price of annoying users with poor site functionality (how many pages did you have to sift through to make a comment?). Believe it or not, Facebook has always held user experience above revenue (especially now after tripping over its privacy policy so many times) and that was why it stole MySpace’s users.

But now the oft-redesigned social network is Specific’s problem, and it’s blowing some commentators minds that an ad network owns a social network. Specific wasn’t high on the tech media’s radar; indeed, the biggest splash Specific has made outside of the ad tech world was a lawsuit that claimed Specific used (previously) hard-to-delete Flash cookies for targeting purposes — which was kicked out of federal court a few months ago with little fanfare coverage.

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