MySpace sold for $35m. Ouch.
 

Myspace, once the dominant social networking site on the Internet but now an afterthought to Facebook, will be sold to Specific Media in a deal worth $35 million in cash and stock, a person familiar with the matter said.

The acquisition by the Irvine-based advertising network is expected to be completed Wednesday.

News Corp., which acquired Myspace in 2005 for $580 million as part of a bold digital strategy, plans to retain a small stake in company. The media conglomerate had hoped to fetch as much as $100 million for the site, which has been steadily shedding users and advertising revenue over the last several years.

The sale marks a significant fall from grace for Myspace, which once commanded a billion-dollar valuation and was the premiere online hangout for musicians, actors and their fans to interact. But the site peaked in popularity in October of 2008 with 76.3 million users. The number of monthly visitors has since dwindled to 35 million in May, according to ComScore Digital Analytix.

Other potential bidders for the site included Myspace co-founder Chris DeWolfe, and an investor group that was courting a personal investment from Activision Blizzard Inc. Chief Executive Bobby Kotick.

The little-known new owner Specific Media was founded in 1999 by Tim Vanderhook and his brothers, Chris and Russell. The firm helps companies distribute advertising online, on mobile devices and on Internet-connected televisions.

Specific Media wants to return the site to its roots as a place for music fans to discover new bands and songs, according to the person familiar with the matter who asked not to be identified because the negotiations are private.

-- Dawn C. Chmielewski

http://latimesblogs.latimes.com/ente...d-network.html

If they waited a few years, they probably could have grabbed the domain when it expired.

wow that hurts

Dang, I think it only shows the fate of FB eventually. The value they have on them seems to be incredibly inflated.

previous owners sold at the right time.. myspace was lame after it was completely redesigned.. what was simple worked better it seemed.

haha!!! :1orglaugh

I think FB has a better grip on people's loyalties. But then again, I've been wrong before. Mostly wrong.

So what is the next big website?

Timing is everything.

so, with 76 million users it was said to be worth a BILLION dollars, but with 36 million users it's worth 35 million....


so when the hype is removed, a social networking site is worth about $1 a user....????

but with hype it's worth about $12 a user.......

Difference is that when it was at 76 million, 90% of them were active, at 36 million only 10% are active.

The one advantage I see Facebook having is they have worked hard to integrate with other aspects of people's lives. For example, I really like the way that people on my facebook, their pic shows up on my phone when they call without me having to select a pic for everyone on my contact list.

Uh that doesn't make sense at all.

Why just say that they have "84 million users and 90% are active", then say "yup, still have 84 million users only now 4.3% are active"

35 mill is alot of cash in my eyes

Google is the next big thing.

http://sagecircle.files.wordpress.co...-influence.jpg

Welcome to the new world economy... :helpme

ADG

True, today is totally different than 5 years ago in terms of technology and how integrated the Internet is into everyone's lives. History shows that these social sites last a few years, maybe up to 5, and then a new lighter system sweeps in and slowly pulls users from a bloated system. Though like you said, FB is no longer just a social media site as Google is no longer just a search engine. Will be interesting to see what happens next.

The valuation on some of these Internet companies is unreal. I don't know enough about the stock market to know how they really work, but it has to be based on hype and quick money, I don't see any other way.

Damn, would have been cool if Activision/Blizzard got it. They could've turned it into a game portal but with actually cool games.

I read on CNN that Facebook was valued at 70 Billion. This means 700 million members = $100 per member.

If half of those are active, $200 per active member?

They made MORE then the money back in the first year alone... they killed the business but they made money in the process.

I agree with you, but it was 76 million on its way up vs. 35 million and plummeting. And how many of those 35 million ever actually visit and for more than a few seconds?

And then you have to break down value by country, too. A Libyan is not worth the same amount as a Canadian, etc.

So with 700 million people... it's probably fair to say that a large percentage of that is not people from G8-20 countries, so the smaller group of people from the G8-20 countries would probably need to be worth $600+ to make up the difference.

Just goes to show how fast the internet evolves. Websites can lose popularity in a snap.

Although I'd like to say Myspace is the exception. Even at it's peak they had a site designed like shit with an asinine amount of spammers and ridiculous flashing/talking advertisements everywhere. They offered a mediocre service at best, almost like they were sitting on their hands just waiting for it's competition to point that out.

Myspace put social networking on the map, but I still feel like they're the antonym of innovation.

:1orglaugh:1orglaugh:1orglaugh Good stuff.

Scott, it's not just about the ammount of users.

The social networking I ran used to do from 35ish page views per user per day when it peaked. Users spent avrg close to an hour a day on the site... Nowdays it's 15 mins... Facebook translated in french made that happen. It still have a similar number of active users in a 3 months period, but it went from canada's top 100 ranking on alexa downhill to 2000ish.

So even if it still has half the members, it probably does 1/20 of the page views.

76 million and growing versus 35 million and falling fast.

Damn. I must be the only one who thinks 35M is way too high still.

they didn't adapt :)

Maybe inflated but you cant compare FB to MP at all.

Myspace = beeper
Facebook/Twitter = mobile phone

I remember years ago wondering why I couldn't click a song and go to itunes to buy it if I liked it. and then I wondered why myspace didnt sell music on their site directly with all the indie bands that have pages. Any why you couldn't have an event list of your favorite bands so you could see which bands are on tour in your city. maybe that will happen now.

I don't really give a fuck about social network sites :pimp

saw this on cnbc earlier, baaaaaaaaaaaaad loss!

The concept is so dead that I'd rather take $35M and invest it into some new social site. With $35M you can hire alot of insane programmers and create a new concept. Not sure why anybody would pay anything for myspace, considering the actual active users are slim to none. The people that still use it are so behind the curve they have little commercial value. All I see on it is spam. Why beat an old horse?

Now you know how people who invested in DIGG feel :(

with $35M you can do a lot of magic, with that money you can better make something from scratch

still http://www.alexa.com/siteinfo/myspace.com

the shadow of facebook makes them feel smaller than is reality.

with 1/4 of that amount it would be possible to establish a big player in 18+ landscape of both web and mobile

What the fuck was Rupert Murdoch thinking buying a social networking website anyway? That guy doesn't even use a computer or read email. And he thinks he can run a social networking site and have it be successful? With business, he was brilliant in the past, but now he's just a big old dumb dinosaur.

http://upload.wikimedia.org/wikipedi...Davos_2007.jpg

I've seen some really shittly myspace websites, so much so that users use black text on black background, flashing gifs for backgrounds and stupid music playing as soon as the page loads. It's sensor overload and I can't stand it.

Facebook is clean and easy to use. It just works.

Talk about an ass raping.

The thing people have to remember with social network sites is the member base is transient. The members that left myspace went to facebook with their friends.

Sooner or later they will move somewhere else & FB will be in same place Myspace is now.

haha good one..

who cares for mySpace

you should care for yourspace :winkwink:

:1orglaugh:1orglaugh

Cash AND stock

Hopefully not too much of the latter!

i hate facebook but i still use it because its easy

Sucks for them

it was end game desperation of the newspaper industry. old news..
.