Murdoch paid around $330million for MySpace, MySpace is doing annual revenues of 400m+ with a staff of around 1000. General estimate of MySpace's current market value tend to be around the $5 billion point.
Yes. Because clearly being the 25th most popular site in the US has no value.
No-one's disputing that Facebook are beating MySpace, but saying they're worthless is like saying Pepsi are worthless because they're not Coke.
At the revenue levels they're at and at the size of their employee base, they could easily cut costs and make back that 327 million in a single year (at the cost of long term growth). Regardless if you think they're worth 1 billion or 5 billion, they're clearly worth more than worth Murdoch paid for it.
He could sell tomorrow for the price he paid for it and have private equity buyers bite his hand off.
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Murdoch paid around $330million for MySpace, MySpace is doing annual revenues of 400m+ with a staff of around 1000. General estimate of MySpace's current market value tend to be around the $5 billion point.
Murdoch did get an amazing deal.
The purchase of MySpace's parent company was $580 million. Apparently $327 million of that was "attributed" to MySpace itself.
Revenues are meaningless. MySpace last reported a profit in 2007, of $10 mil on $550 mil in revenue.
http://www.zdnet.com/blog/btl/fox-interactive-turns-annual-p...
Facebook then proceeded to eat MySpace's lunch.
August 2010 article about how News Corp. may never profit from MySpace:
http://www.bnet.com/blog/advertising-business/news-corp-may-...
MySpace's current market value is nowhere close to the $5 billion you claim. It has been hemorrhaging market share to Facebook for years.
Just check out the graphs.
http://www.alexa.com/siteinfo/myspace.com
Steady drop toward zero.
Yes. Because clearly being the 25th most popular site in the US has no value.
No-one's disputing that Facebook are beating MySpace, but saying they're worthless is like saying Pepsi are worthless because they're not Coke.
At the revenue levels they're at and at the size of their employee base, they could easily cut costs and make back that 327 million in a single year (at the cost of long term growth). Regardless if you think they're worth 1 billion or 5 billion, they're clearly worth more than worth Murdoch paid for it.
He could sell tomorrow for the price he paid for it and have private equity buyers bite his hand off.
http://www.businessinsider.com/henry-blodget-myspace-worth-z...
In order for something to be worth anything at all, it needs a buyer willing to agree to that number.
I'm not sure MySpace has such an optimist.