MySpace sold for $35M, a $545M Loss

2.7.11


News Corp. an integrated media company founded by Rupert Murdoch, with properties in film, television, cable, magazines, newspapers, publishing, has unloaded the former social networking powerhouse website, MySpace for $35 million.

Just four years ago, the social-networking site had a valuation of $12 billion.

News Corp. had reportedly been expecting a sale ranging into $100 million, which itself would have represented a huge drop from the staggering $580 million the company paid for MySpace back in 2005.

Specific Media's homepage

MySpace's new owner is the ad network Specific Media, and News Corp. will get a minority equity stake in that company. Specific Media is an innovative global interactive media company that enables advertisers to connect with consumers in meaningful, impactful and relevant ways.


Specific Media now has a platform to sell advertising to what is still a very sizable community, and it said it will unveil its plans for MySpace later this summer. Based on monthly unique visitors, MySpace had about 35 million visitors in May, while Facebook had nearly 160 million. The site also includes MySpace Music, with 38 million songs that are delivered to users via streaming music which Facebook lacks.
 
Users now can even connect to Myspace using Facebook 


Michael Gartenberg, research director at the Gartner Group, said the price drop for MySpace is a "testament to how things can change so quickly in the social space." He added that, while the "days of MySpace as a dominant social space are over, the brand still has a core set of followers, primarily based around music," and it's conceivable that some sort of sustainable business model could evolve.

MySpace is not the only social-networking site to soar, be acquired, and then crash. Back in 2008, AOL spent $850 million for Bebo, only to sell it later for under $10 million.

14 comments:

phosports said...

hahaha myspace, got greedy.

non-observant said...

Myspace: unfriended

Ala Mode 7 said...

Hahaha, it's not like anyone uses myspace anymore. Rupert Murdoc owned it for awhile? When did that happen?

paulz said...

haha amazing to see how much it has devalued.

Bremsy said...

Oh well facebook is going down the same path tho with its customers droping in the western world

STRAFOR said...

534M really amazing

Zach said...

Still a lot of money, but I wonder how much it was worth before Facebook arrived. I guess they got too greedy

Shaquille said...

Myspace is pointless, it's just like Facebook. You get "Sucked" into it.

animestan said...

In the age of fast growing technology, this is inevitable. Still amazed it sold for such a price.

Follower #99872301 said...

Pretty impressive... so when is Facebook's demise?

Kingmush said...

Surprised it got that much honestly... So out of date now, and the image it has now there is no recouping from that.

Kopite said...

@Follower #99872301

Most likely Google+

Kingmush said...

@Kopite

Hopefully.

blorriepoes said...

myspace wasnt gonna catch up with the rest, they did a wise thing.
+1 and following you!

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