×
You will be redirected back to your article in seconds

Time Inc. Buys Myspace Parent Company Viant

Time Inc. expects Viant to contribute $100 million in ad revenue for 2016

Time Inc. is the new owner of Myspace, the one-time social-media darling valued at $12 billion at its peak before being eclipsed by Facebook and Twitter.

Myspace comes to the publishing and media company through Time Inc.’s acquisition of Viant Technology, a data-marketing company based in Irvine, Calif.

Terms of the deal, announced Thursday, were not disclosed. Time Inc. said it expects Viant to contribute about $100 million in digital-ad sales for 2016. For the full year 2015, Time Inc.’s digital advertising revenue was $331 million, up 11% from the year prior.

Rupert Murdoch’s News Corp. bought Myspace for $580 million in 2005, coveting its large, youthful audience. But the media conglomerate failed to turn the property into a viable business.

“Many questions and jokes about My Space,” Murdoch tweeted in 2012. “Simple answer — we screwed up in every way possible, learned lots of valuable expensive lessons.”

Viant, which changed its name from Interactive Media Holdings last year (and was formerly known as Specific Media), bought Myspace from News Corp. in 2011 for just $35 million. The company had relaunched Myspace, in partnership with Justin Timberlake, as a music-discovery site with access to millions of music tracks and videos.

According to Viant, it owns a database with info on 1.2 billion users worldwide, including about 1 billion from Myspace alone.

Time Inc., whose media properties include People, Sports Illustrated, InStyle and Time, seems to think it can do better with Myspace than News Corp. did. In a release announcing the Viant purchase, Time Inc. said it plans to use the company’s assets to target online ads, link usage on devices with people and convert “ad spending to actual sales.”

“This acquisition is game-changing for us,” said Time Inc. chairman and CEO Joe Ripp. “Marketers are selecting media partners that have either data-driven capabilities or premium content; we will be able to deliver both in a single platform, and will stand apart from those that offer just one or the other.”

Time Inc. stock closed down 8.6% Thursday amid a broader market decline, to $12.40 per share — its lowest level since the company’s 2014 spinoff from Time Warner.

For the fourth quarter of 2015, the New York-based company posted revenue of $877 million, down 2% year over year, and net income of $17 million versus $145 million in Q4 2014. On an adjusted basis, Time Inc. had earnings per share of 58 cents; Wall Street analysts had expected adjusted EPS of 66 cents on revenue of $872 million.

More Digital

  • ICM Partners

    ICM Partners Promotes Six Agents to Partner Status

    ICM Partners has promoted six agents to partner status. ICM’s partner class of 2020 features four women and two men drawn from disciplines across the agency: Courtny Catzel (Non-Scripted), Di Glazer (Theater), Shade Grant (Non-Scripted), Andrea Johnson (Concerts), Craig Shapiro (Talent) and Howie Tanenbaum (TV). The promotions bring the number of partners at ICM to [...]

  • Podcast Company Meet Cute Raises $3

    Shari Redstone's Advancit Capital Among Investors in Podcast Company Meet Cute (EXCLUSIVE)

    Meet Cute, a New York-based podcast company that focuses on romantic comedies, has secured more than $3 million in funding from a group of investors, including Shari Redstone’s Advancit Capital and venture capital firm Union Square Ventures. Meet Cute CEO Naomi Shah did not disclose the exact dollar amounts from each company, but revealed that [...]

  • Pluto TV Grows U.K. Offering With

    Pluto TV Grows U.K. Offering With 'Made in Britain' and 'Brit-pocalypse' Channels

    ViacomCBS’s Pluto TV streaming service is expanding its U.K. offering with new channels dedicated to British film and TV fare and cataclysmic miniseries. Pluto TV Made in Britain is a 24/7 channel showcasing film and TV favorites, documentaries and celebrity shows. From momentous periods in British history to stories of pop icons, athletes, famous criminals and the royal [...]

  • Disney Myth A Frozen Tale

    ‘Frozen 2’-Inspired VR Film ‘Myth’ Creates Beautifully Immersive ‘Fairy Tale Within a Fairy Tale’

    With “Myth: A Frozen Tale,” Disney Animation has crafted a visually stunning virtual-reality short film — a project that flexes its VR muscles but deftly uses the technology in service of storytelling. Sometimes VR experiences feel like proof-of-concepts straining to justify their 3D settings. “Myth,” by contrast, employs virtual reality so effectively it feels like [...]

  • Logan Paul Ninja Spree

    How Logan Paul and Ninja Helped 'Spree' Cast Capture Influencer Culture Gone Wild

    When it came to depicting the gonzo nature of influencer culture, “Spree” stars Joe Keery and Sasheer Zamata and director Eugene Kotlyarenko did a deep dive into the haves and have-nots of the internet. “Spree,” which premiered Friday at Sundance Film Festival, follows a rideshare driver named Kurt Kunkle (Keery) who will stop at nothing [...]

  • Activision-Blizzard-Overwatch-League-Grand-Finals-2018

    YouTube Scores Exclusive Streaming for Activision Blizzard's E-Sports, Including Overwatch and Call of Duty Leagues

    YouTube landed a multiyear deal as the exclusive live-streaming partner for Activision Blizzard’s e-sports events worldwide, including Overwatch League, Call of Duty League, Hearthstone Esports. The agreement (which excludes China) promises to give a big boost to YouTube Gaming, the video giant’s dedicated home for all things related to games. It’s also a loss for [...]

More From Our Brands

Access exclusive content