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.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
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I wonder what their monthly Ad revenue rate is like?
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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.
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myspace
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What a joke
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Re: What a joke
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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
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Why wouldn't MySpace themselves not be able to make much more than that?
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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
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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.
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