Is News Corp. Looking To Sell MySpace?
from the buy-low-sell-high dept
News Corp. boss Rupert Murdoch told investors in Australia yesterday that the company could sell MySpace for $6 billion now, a more than tenfold premium over the $580 million it paid for the social-networking site last July. A Wall Street analyst said a couple of months back that the site was worth $10 billion to $20 billion, though many people struggled to see the justification for such a high figure. But there's a bigger question: why does it sound like Rupert's using the Skype billion-dollar buyout plan of tossing out ridiculous valuations and asking prices for your company -- you know, the one that worked so well recently for YouTube. Could News Corp. be thinking of unloading MySpace, and Murdoch is trying to drive up the price? While such a scenario seems unlikely, it is an interesting possibility. Despite MySpace's place at the top of the social-networking space, its ownership by News Corp. has been characterized by missteps, misunderstandings, talk of inflated traffic numbers, and a strategy to make new media more like old media. While Murdoch may not understand the internet, he's proven himself to be a very shrewd businessman -- and engineering a $5.4 billion profit on MySpace in just over a year could be a pretty smart way to play the social-networking space, given the here-today-gone-tomorrow nature of many of its sites.






Reader Comments (rss)
(Flattened / Threaded)
[ reply to this | link to this | view in thread ]
Re:
[ reply to this | link to this | view in thread ]
Perhaps worth $1.5-2 Billions
Yahoo might consider buying MySpace, but knowing them, they are sure to pass this one up too. So, let us not consider them.
[ reply to this | link to this | view in thread ]
Re: Re:
I wonder what their monthly Ad revenue rate is like?
[ reply to this | link to this | view in thread ]
myspace
[ reply to this | link to this | view in thread ]
What a joke
[ reply to this | link to this | view in thread ]
If google purchases it they hopefully will make it a bit more frendly to report fake/porn profiles and remove them opening up more space and actually making it easier to find what you want
[ reply to this | link to this | view in thread ]
Re: What a joke
[ reply to this | link to this | view in thread ]
[ reply to this | link to this | view in thread ]
[ reply to this | link to this | view in thread ]
Why wouldn't MySpace themselves not be able to make much more than that?
[ reply to this | link to this | view in thread ]
FIM worth more separate than combined?
Anyway, for a FIM is worth more separate than combined, check this out:
http://www.watchmojo.com/web/blog/?p=805
[ reply to this | link to this | view in thread ]
Rupert Murdoch is a smart guy
I've always thought Myspace.com is one of the worst website and it seems that i may actually be right.
[ reply to this | link to this | view in thread ]
[ reply to this | link to this | view in thread ]
Re:
[ reply to this | link to this | view in thread ]
Add Your Comment