The MySpace Yard Sale has a Buyer

MySpace was sold to News Corporation for $580 million six years ago, when the social networking site WAS social networking.

Now that the site has become all but irrelevant, it has put itself up for sale with an asking price of $100 million.

But as they say, anything is only worth what others are willing to pay for it, MySpace may be accepting a bid from Specific Media for around $30 million to $40 million (The Los Angeles Times reports a $35 million deal has been reached).

Specific Media is a an ad-targeting firm, who as part of a deal, is asking Myspace to layoff more than half of its staff of about 500 people (a number which two years ago was around 1,400 employees). The Wall Street Journal reports that News Corp may retain a small stake in the site once the deal is closed. There are also reports of a couple of other bidders, including Golden Gate Capital and two groups involving MySpace founders Chris DeWolfe and Tom Anderson.

Specific Media's interest in MySpace appears to be in giving the company access to data about Myspace users to be used for ad targeting. The also reports that it also would transform the firm into a media company with its own ad space to sell instead of simply an online ad technology firm that brokers ad space on behalf of other websites.

Source: WSJ

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