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MySpace Web's 'Biggest Steal'

Posted May 8, 08 3:22 PM CDT in Business,  Technology 

(Newser) – MySpace fell short of revenue targets in the most recent quarter, but, Adam Ostrow argues in Mashable, it’s still proven a phenomenal deal since Rupert Murdoch’s News Corp. bought it for $580 million in 2005. Revenues from its unit are pulling close to its purchase price and it’s on track to make more with music downloads, sponsorships and targeted ads.

Even after adjusting its expectations downwards, News Corp. still projects $900 million in revenue this year from Fox Interactive, made up primarily of three companies, including MySpace, it acquired for a combined $1.5 billion. This puts the purchase price for the three at just 1.7 times their projected sales—compared to Facebook, valued at 100 times its estimated sales.

Source Mashable

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MySpace co-founder Tom Anderson attends Cosmopolitan Magazine's Fun Fearless Male of the Year Awards, March 3, 2008, in New York.   (AP Photo/Evan Agostini)
Media baron Rupert Murdoch, who controls News Corp., speaks at the company's Global Energy Initiative on Wednesday, May 9, 2007 in New York.   (AP Photo/Mark Lennihan)
Rupert Murdoch, who controls global media conglomerate News Corp., speaks at a news conference in New York in this file photo of Oct. 20, 2006.   (AP Photo/Mark Lennihan, File)
With MySpace pulling in more in revenue than Rupert Murdoch bought it for, the social networking site is the Web's biggest steal, Adam Ostrow writes on Mashable.   (AP Photo/Jacquelyn Martin)
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Facebook • social networking • Rupert Murdoch • MySpace • News Corp • acquisition • corporate earnings


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