Global media company News Corporation has sold the ailing Myspace business in a cut-price deal for $35 million (£22 million), 6 per cent of the $580 million paid by Rupert Murdoch’s business in 2005.

Global media company News Corporation has sold the ailing Myspace business in a cut-price deal for $35 million (£22 million), 6 per cent of the $580 million paid by Rupert Murdoch’s business in 2005.

The deal is being led by American entertainer Justin Timberlake, alongside a California-based digital advertising agency.

The deal for the social media website follows a protracted sale process with New York-headquartered News Corporation holding out for a higher price.

‘There’s a need for a place where fans can go to interact with their favourite entertainers, listen to music, watch videos, share and discover cool stuff and just connect. Myspace has the potential to be that place,’ Timberlake comments.

Following the initial purchase of California-headquartered Myspace by News Corp, rival social media website Facebook has seen a rapid growth of users, and overtook Myspace in 2008.

Myspace laid off 500 staff at the beginning of 2011 following a decline in revenues.

According to figures from ComScore, which tracks the media market, Myspace user numbers peaked at 73.6 million and now has 35 million.

Founded in 1999 by brothers Tim, Chris and Russell Vanderhook, Specific Media provides online advertising services.

Tim Vanderhook comments: ‘We look forward to partnering with someone as talented as Justin Timberlake, who will lead the business strategy with his creative ideas and vision for transforming Myspace.’

Under the terms of the deal, News Corporation is to take a minority equity stake in Specific Media.

According to a statement, Specific Media and Timberlake plan to evolve Myspace into the ‘premiere’ digital destination for ‘original’ shows, video content and music.

Timberlake adds: ‘Art is inspired by people and vice versa, so there’s a natural social component to entertainment.’