Who Bought Myspace From Tom Anderson
Tom Anderson, co-founder of Myspace, sold the social network to News Corp in July 2005 for about $580 million, with the deal closing later that year under the Fox Interactive Media unit. The acquisition made Myspace one of the most valuable social media properties at the time and turned Anderson into a prominent figure in early internet entrepreneurship, as detailed by Forbes in its coverage of major digital acquisitions. News Corp, led by Rupert Murdoch, saw Myspace as a gateway to younger audiences and a way to compete with emerging platforms in the mid-2000s.
After the acquisition, Myspace continued to grow rapidly, reaching over 100 million monthly active users by 2006 and becoming the most visited social networking site in the world, surpassing even Google in global traffic for a period. News Corp integrated Myspace into its digital portfolio, which included other media and advertising assets, and used the platform to experiment with music streaming, video sharing, and user-generated content.
What Happened After the Sale
Myspace declined in popularity as Facebook grew, and News Corp sold the platform to Specific Media and Justin Timberlake in June 2011 for $35 million, a fraction of the original purchase price. The new ownership group aimed to reinvent Myspace as a music-focused social network, but the site never regained its former user base or cultural relevance, and it was eventually sold again to Time Inc. in 2016. Time Inc. later merged with Meredith Corporation, and the Myspace domain and remaining assets became part of a broader portfolio of digital media brands.
Today, Myspace exists as a largely archived platform, with limited active use and minimal influence on the social media landscape, while Tom Anderson remains a well-known figure in tech circles and has been involved in various startup and investment activities. The story of Myspace is often cited as a cautionary tale about the rapid rise and fall of dominant platforms in the fast-moving social media industry.
Key Details of the Myspace Transaction
The sale price of $580 million in 2005 made the Myspace deal one of the largest internet acquisitions of its era, and it was widely reported by outlets like TechCrunch and The New York Times as a landmark moment in social media history. News Corp's Fox Interactive Media unit managed Myspace for several years, during which the platform generated significant advertising revenue and attracted major music labels and artists looking to connect with fans.
The transaction also highlighted the strategic value of social networks as media and advertising platforms, influencing how other companies approached digital acquisitions and user growth. Tom Anderson's role as the public face of Myspace helped build brand recognition, and his partnership with Chris DeWolfe in creating the platform laid the groundwork for a new era of online social interaction that would soon be reshaped by competitors like Facebook.