MySpace killed Friendster only to be gobbled up by Facebook. Six years after NewsCorp bought MySpace for US$ 580 million it’s now sold for US$ 35 million for a group of investors reportedly containing Justin Timberlake (inspired by his role as Sean Parker in The S0cial Network, perhaps?).
Google just launched its own “Facebook-killer” yesterday. There is absolutely no evidence yet whether Google Plus or any other competitor or substitute will bother Facebook. There is even less evidence about what’s “in the prices” – what prices? what metrics? what predictability of future cash flows? – so Social Media buyer beware. More links inside.MySpace’s demise – Guardian UK – It mentions a “heyday” valuation of $12 billion, now sold for $35 million.
Rest in peace MySpace – IBTimes – Looks at traffic data comparisons.
MySpace offers tough lessons – BBC News.
MySpace sold – FT.com’s Alphaville blog takes a swipe by showing a bullish 2006 story versus the 2011 AllThingsD story we linked to above.
MySpace sold on the cheap? – BusinessWeek – Buysiders.com is all about finding opposing sides of the arguments. However, this is an October 2006 article! It’s about some of the MySpace shareholders who sold to News Corp. supposedly mad about the deal. One M&A “expert” even calls it “the best acquisition ever”…
Google’s latest crack at social media – an FT.com short video showing Google +
Google throws full weight at Facebook – FT.com – is it really its full weight this time? Given how similar it is to Facebook, we’d judge yes. But how are managerial strategy, talent, focus and incentive systems aligned with this project? Facebook simply has no choice, Google does. Kind of.
Another try by Google – NY Times.com
Is there life after web-death? – FT.com’s LEX column on MySpace – the concept of “barriers to re-entry” is powerful.
Why Facebook beat MySpace – From a Forbes.com blog, it’s certainly not the first nor the last in the hundreds of similarly-themed analysis, but it’s worth the read.
Video interview with Richard Rosenblatt, who founded iMall.com and sold it for US$ 560 million, then sold MySpace for US$ 580 million and has founded and IPO’d Demand Media. Given his timing so far, we’d listen closely! His description of the sale of MySpace to News Corp brought tears to our inner salesmen.