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myspaceMyspace’s parent company News Corp. has sold the social networking site for $35 million to Specific Media, reports All Things Digital.

The deal will pay out a mix of cash and stock to Specific Media, an online advertising company, with News Corp. retaining about 5 percent of Myspace, according to the report.

Significant cuts to Myspace’s 400-employee staff are expected to follow the sale, according to sources within the company. CEO Mike Jones and other top-level staff will likely remain on for an interim period, the report states.

News Corp. purchased the California-based social network in July 2005 for $580 million. Myspace’s revenue peaked at over $900 million in 2008.

Specific Media outbid other potential Myspace buyers such as private equity firm Golden Gate Capital. The company is expected to focus on Myspace’s music features.

“Myspace is a recognized leader that has pioneered the social media space. The company has transformed the ways in which audiences discover, consume and engage with content online,” said Specific Media CEO Tim Vanderhook in a press release. “There are many synergies between our companies as we are both focused on enhancing digital media experiences by fueling connections with relevance and interest.”

Irvine, California-based Specific Media was founded in 1999 by brothers Tim, Chris and Russell Vanderhook. The company operates many offices around the world.

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