Last week MySpace was sold in a deal that’s had the web buzzing with speculation about it’s future.

After months of trying to offload the failing site, News Corp. sold MySpace to ad network Specific Media for a fee of around $35m – a fraction of the $580m the company bought it for back in 2005.

It’s a deal that’s sure to leave a very sour taste in the mouth of Murdoch et al. but they may take some comfort in the fact it’s not the first time we’ve seen this happen. Remember Bebo? The teeny-bopper social network was snapped up by AOL in 2008 for $850m and sold only two years later for a measly $10m. Ouch.

So what next for MySpace – once the biggest social network in the world?

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Image credit – Bitterjug

Rumour has it MySpace is set to cut half of it’s remaining workforce which will reduce head count to under 250. It’s hard to believe that 2 years ago MySpace employed upwards of 1,400 people.

With such established competition already dominating the social market it’s hard to see where the future of MySpace lies. Back in November 2010 MySpace was re-invented as a ‘social entertainment destination’ complete with slick new branding, new layout and a bunch of new features – a clear effort to steer away from the ‘social network’ label it always carried.

However, despite best efforts the uptake was poor and the site remains abandoned by all but a handful of it’s loyal users.

MySpace’s new owners have vowed to revive the MySpace brand (with the help of Justin Timberlake of all people). All we can say is good luck – they’re going to need it.

Can MySpace really be revived, or should the towel be thrown in now while there’s still a slither of dignity left? Answers on a postcard please…