Distressing performance of the MySpace finally force its owner News Corp. to sell the social networking site a little-known ad-targeting firm Specific Media.

According to AllThingsD’s Kara Swisher, who was the first to report the sale, Myspace has been sold for $35 million in cash and stock, a price that represents a loss of $545 million as New Corp. had purchased MySpace for $580 million in 2005.

However, sources also reported that New Corp. is retaining around 5 per cent of MySpace.

Specific Media said it joined forces with well-known actor and pop star Justin Timberlake to turn around the social networking site by making it a place to consume media and hook up with entertainers. Mr. Timberlake share in the company has yet not been disclosed.

Speaking on the topic, Mr. Timberlake said, “I’m excited to help revitalise Myspace by using its scoal media platform to bring artists and fans together.”

MySpace, which was once the dominant social networking site on the Internet, suffered an unprecedented decline and disillusionment as Facebook snatched much of its social network market share.

The new owner will reportedly slash MySpace’s staff of 400 to half.