Justin Timberlake leads $35m Myspace buy-out
NewsCorp receives just 6% of initial investment
A consortium led by Hollywood actor Justin Timberlake has purchased Myspace for $35m – just 6% of the price Rupert Murdoch’s News Corporation paid for the social network in 2005.
Under the terms of the buy-out, Timberlake will take an office at the Myspace headquarters and “lead the business strategy” for the site, according to Specific Media – which partnered with the former *NSYNC star on the deal.
However, insiders say it is unlikely that Timberlake will take a day-to-day role in revamping the Myspace offering.
NewsCorp, which will retain a 5% stake in Myspace as part of the deal, paid $580m for the social network six years ago, and was originally hoping to raise $100m from its sale.
However the media conglomerate has received little more than a third of its initial target – a clear sign of MySpace’s recent decline in fortunes.
Having reached 300 million users at its peak, the site has suffered heavily from the emergence of Facebook, which many now see as a cooler, more user-friendly resource.
Earlier today Sean Parker, a key investor in Facebook – who, ironically, was played by Timberlake in the 2010 film the Social Network, called Myspace “a junk heap of bad design.”