Tag: sale

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MySpace Sells for $35 Million

It’s amazing how quickly things in life can change.  Just a few short years ago social networking website MySpace was legendary and considered hip amongst the younger generation.  Really, I remember a time when you would meet a person in line at a grocery store, and instead of swapping mobile numbers or even email addresses you would link up on MySpace.  And the socially driven website wasn’t just a hit with run of the mill folk like you and me, either.  Businesses, organizations, and bands from all areas flocked to MySpace as a mechanism to attract and keep up with fans and customers.  Simply put, MySpace was the place to be on the Internet.  Needless to say, the seemingly endless potential of the website was just too much for Rupert Murdoch’s News Corporation who swept up the then-popular website in July of 2005 for an eye-popping $580 million.

Over the years, though, MySpace has gone south in more ways than one.  Even after working to redefine its public image and re-attract user, the company was forced to lay off about 500 employees earlier this year.  Why?  The company simply wasn’t generating enough capital to justify the investments that News Corporation was putting into it.  This said, it shouldn’t come as any surprise that the company sold off MySpace this week to Specific Media for a sum of $35 million.  Sure, it’s a pretty chunk of change, but compared to what the site was worth just years ago I for one think it’s pretty pathetic.

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