Myspace Cost Murdoch Over $1 Billion

Myspace Cost Murdoch At Least $1 Billion

Myspace Cost Murdoch Over $1 BillionI have made no secret of my belief that Murdoch ran Myspace into the ground from the number one social network in the world, to now being worth 0.05% of its rival Facebook which is now valued at $70 Billion. But now we have a few numbers as guestimated by Anders Bylund.

Byland has done some thorough analysis over at Ars Technica, but the conclusions are what interest me – he estimates that Murdoch made a loss of somewhere in the region of $1.3 Billion on MySpace (See graph below) – that won’t bankrupt News Corp, but is quite a dent in their profits.

Myspace Losses

On a related note is a story from the WSJ that reports that MySpace has laid off over half of its previous 450 staff in the sale to Specific Media. After the job cuts in January, that means that MySpace has cut about 75% of its workforce within six months. However, with MySpace a shell of its former self, I find it difficult to see where it fits into Specific Media CEO Tim Vanderhook’s desire to build a “digital media company on par with Yahoo, AOL, Facebook, and all the other big names out there” – the name and brand recognition may be worth the $35 million price tag, but I am imagining a huge pivot for the company in the not too distant future.

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