Let's hear it for MySpace, one of the leading case studies in future business books on how NOT to purchase and run social media. Rupert Murdock (News Corp., everything Fox, Wall Street Journal, and much, much more) bought MySpace near the top of the market back in 2005. Self-proclaimed business genius notwithstanding, he lost over $90 million per year based on the fire sale last week.But the fun part of the deal, besides tweaking Murdoch, is that Justin Timberlake has jumped into the picture, and bought into the deal that gave Specific Media ownership of MySpace. Lots of commentary from places like the Ministry of Gossip, which certainly sounds like it should be based near Hollywood, noticed the cinematic irony that Timberlake, after playing in that little movie about Facebook, is now buying MySpace.
Justin Timberlake is to take a "major role" in the new direction of Myspace after he emerged as one of those behind a $35m deal for the ailing social network.
The singer turned actor, who starred as Facebook investor Sean Parker in the Hollywood hit The Social Network, took a stake in Myspace along with the online advertising company, Specific Media.
The unlikely entrepreneur will "lead the business strategy" for the fallen social network, the Specific Media chief executive Tim Vangerhook, said on announcing the $35m deal on Wednesday evening.
Myspace has shed billions of dollars from its price tag since it was dethroned as the dominant social network in 2008. Rupert Murdoch's News Corporation agreed on Wednesday to sell Myspace for a fraction of the $100m it was seeking – a sign of the site's dramatic fall from greatness.
News Corp will retain a minority stake in Myspace after putting the struggling social network up for sale earlier this year, engaging investment bank Allen & Co to find a buyer.
In an interview with AdAge, Vanderhook said Timberlake, 30, had put his own money into buying Myspace, but refused to disclose how much. He confirmed that the former N Sync singer will have an office in Myspace but that he was "probably not going to be there every day".
Asked whether he thought Timberlake had been inspired by his star turn in The Social Network, Vanderhook said: "I don't think it was so much that – that was just ironic. He's really passionate about how can he create a better community."
Timberlake said in a statement: "There's a need for a place where fans can go to interact with their favorite entertainers, listen to music, watch videos, share and discover cool stuff and just connect. Myspace has the potential to be that place.
"Art is inspired by people and vice versa, so there's a natural social component to entertainment. I'm excited to help revitalise Myspace by using its social media platform to bring artists and fans together in one community."
Just this week, Parker said Myspace's fall from grace was down to it being a "junkheap of bad design", while Facebook blossomed with lots of new features.
He told TV host Jimmy Fallon at the NExTWORK conference: "They weren't successful in treating and evolving the product enough, it was basically this junkheap of bad design that persisted for many many years. There was a period of time where if they had just copied Facebook rapidly, they would have been Facebook. They were giant, the network effects, the scale effects were enormous."
"There's a need for a place where fans can go to interact with their favorite entertainers, listen to music, watch videos, share and discover cool stuff and just connect," the Grammy-winning star said in a statement. "MySpace has the potential to be that place.”
I'm pretty sure MySpace had it’s shot at being that place. Until it became the social network for bands that suck, porn, spam and porn spam. Oh, yeah, and sexy girls.
Timberlake’s manager, Johnny Wright, insists that Justin will be playing an active role in creating the ‘new and improved’ MySpace. "This is not a vanity ownership. He wants to make it relevant in a big way." I guess if anyone can help out the flailing company, it would be someone like Timberlake. He’s a huge star and seems to be into the whole digital media thing. Plus he’s super funny on SNL. So there's that.
sources:
http://a4.omgmusic.com/300x225/justin-timberlake-buys-stake-in-myspace.jpg
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