News Corp has sold the once popular social networking site, Myspace to a California-based digital advertising agency, Specific Media, which is backed by musician Justin Timberlake.

Mr Timberlake will pick up a stake in the site and help refresh its strategy for future along with Specific Media. Myspace, which was founded in California in 2003 and was the world’s biggest social networking site until three years ago, has faced a dramatic decline in the number of active users as well as revenues.

“There’s a need for a place where fans can go to interact with their favorite entertainers,” Mr. Timberlake said. “I’m excited to help revitalize Myspace by using its social media platform to bring artists and fans together.”

The user base for the site peaked at 73.6m in October 2008 and has since fallen to 35 million, according to figures released by ComScore. The new strategy for the company will align it back to its origin, music.

Specific Media was established in 1999 by Tim Vanderhook and his brothers. The company will reduce Myspace staff to about 250. The agency and Mr. Timberlake will put forward a new strategy for the site in the coming months. News Corp will remain a small stake holder in the site.