Below is a video demo of how it works:

By the time MySpace was sold, News Corp. was valuing the social network at almost $300 million even when they were trying to sell it for $100 million. News Corp. acquired MySpace for $580 million in 2005 and sold 95% of MySpace for roughly $35 million this past June.

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Today Myspace sold to Specific Media for $35 million, but the surprising part of the sale is that Justin Timberlake will be taking an ownership stake in the company. In a move reminiscent of Lady Gaga’s partnership with Polaroid, Timberlake will be more than just a name associated with the company: according to Mashable, he will be contributing his vision to Myspace as well. Another report from Mashable says that Myspace’s CEO Mike Jones will be leaving the company after a transition period. Specific Media, an advertising network, plans to focus Myspace on entertainment.

Myspace is currently subject to a lot of rumors, from layoffs to sale, and should be done with their acquisition deal by Thursday. All Things D reports that Specific Media and Golden Gate Capital are the frontrunners in the deal, both with plans to focus on Myspace’s music services. Before the deal finalizes Myspace will likely cut its staff—some say by 50%, maybe more.

There is clearly nothing wrong with Facebook making money, as all business has to do. What IS clearly wrong is when our privacy, our personal information, our digital lives are being subjugated for the sake of profit, without us having any meaningful capability to opt out, or even know the extent of such activity.

Is there another option? What are our alternatives? If we don’t like what Facebook is doing, what can we do about it?

Well, herein lies the problem. There are NO serious alternatives at this time. For every Coke there is a Pepsi, for every Ford there is a Chevy, for every PC there is a Mac and for every Facebook there is…. a void! Facebook has such overwhelming power that practically no one believes that trying to build an alternative is possible.

DFJ Managing Partner Josh Stein wrote in a tweet: “Incredibly excited to be an investor in Altly, my third adventure with @dmitry.” Some of Shapiro’s previous companies include Veoh and Akonix.

[AllThingsD]

When MySpace’s revenue fell in 2009, DeWolfe who was CEO at the time was basically kicked out. Facebook started really dominating in 2009. Currently MySpace is being shopped around and it is rumored that buyers are not willing to spend higher than $100 million for it. DeWolfe is rumored to be involved as one of the buyers. This is a huge difference from the $856 million revenues that MySpace posted in 2008 and the $580 million price that News Corp. spent to buy the social network in 2005.

Hallpass Media is a gaming portal website that receives about four million monthly visitors. Hallpass Media also has 1,500 web based games that will be added to MindJolt’s portfolio. Social Gaming Network (SGN) creates iPhone and Android games that have a total of about 30 million downloads.

“Initially, a lot of energy was spent on games on the Web, through platforms like Facebook,” stated SGN founder and executive chairman Shervin Pishevar. “But over the past year, what we’ve seen is that a lot of that activity is going into mobile. We’ve reached a tipping point.”

SGN raised about $18 million in venture capital funding from Felicis Ventures, Greylock Partners, The Founders Fund, Novak Biddle Venture Partners, Columbia Capital, Bezos Expeditions, Eric Schmidt’s TomorrowVentures, and Lars Hinrichs.

[NYT]

[TechCrunch]

[Bloomberg]

“I don’t think it would be incredibly difficult to raise the kind of money we would need to buy it,” stated Siegel. MocoSpace believes that MySpace has a robust mobile business to it. He also believes that MySpace does not need 500 employees, but more like 100 people.