MySpace Turns A Profit, Barely
from the not-even-in-the-tweens-of-millions dept
Ever since News Corp. bought out MySpace, there have been lingering doubts about the social networking site's profitability. The deal that the company signed with Google did put some of these doubts to rest, as it seemed likely that News Corp. would comfortably recoup its initial outlay. But the fundamental issue of whether a popular social networking site is necessarily a cash cow remains up in the air. Yesterday, News Corp. announced that in this past fiscal year, the company's interactive division (which is mainly MySpace) turned a profit of $10 million on revenue of $550 million. These are incredibly paltry margins. This division is still growing rapidly, so it's understandable that it would be putting a lot of money towards new investments. However, the figures include money from the Google deal, which should drop right down to profits. In other words, while the company may be crowing that the unit is now profitable, it's far from showing that things are truly successful.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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Filed Under: social networking
Companies: myspace, news corp
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My Space great idea, bad business.
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Targeted advertising
When I log into Gmail I am offered free issues of parenting magazines, discount heartworm pills and occasionally an add for a new drill bit or something.
When I log into MySpace they show me an 6 ads for a dating site, and a "punch the monkey get a free iPod" scam.
Which site do you think gets more ad traffic from me?
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Re: Targeted advertising
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Re: Targeted advertising
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Thats the problem with free things
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Two Words...
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Re:
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