Fire sale update! Myspace sells (finally) for $35 million

Specific Media buys sinking social networking site; heavy layoffs reported

As I wrote yesterday, News Corp. was on the verge of selling the incredibly shrinking social networking site Myspace for anywhere between $20 million and $35 million, with two bidders vying for the deal.

Well, we have a winner, and it's Golden Gate Capital.

Meanwhile, the other bidding finalist, Specific Media, has purchased Myspace for $35 million, proving that Rupert Murdoch still knows how to drive a hard bargain!

(Also see: Myspace carcass attracts two buzzards-- oops, we meant 'bidders')

News Corp. bought Myspace for $580 million in 2005, when it was the most popular social networking site in the world.

Unfortunately, if not unsurprisingly, massive layoffs are accompanying the sale, with more than half of its roughly 500 employees losing their jobs either immediately or in the next few weeks.

One employee who is leaving after a two-month transition period is chief executive Mike Jones, who sent out an internal email late Wednesday morning announcing the sale. An excerpt:

Over the next few days you will be hearing from the team at Specific, including their CEO, Tim Vanderhook, regarding their exciting plans for Myspace and how it fits in with the overall vision of their company.

Yes, I'm sure the excitement is palpable at Myspace headquarters. Honestly, did Specific Media force Jones to write that under threat of losing some of his severance package? What corporate B.S.

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