Nerdology • The End Of Myspace

The End Of Myspace

The end of Myspace could come at any day now. This wasn’t a surprise. A year ago I wrote about Myspace (when the correct spelling was MySpace) and presented a plan on how it could be saved. At the time the big wigs at News Corp said that the site had “months, not quarters” to turn things around.

And while the company did rebrand itself they didn’t do so to the scale I think they needed, as drastically as I had hoped. There have been multiple reports saying that a sale is around the corner. It’s really sad to see how a giant in the internet space has fallen so quickly. In February just after Myspace cut their staff by 47% COO Chase Carey told analysts:

With a new structure in place, now is the right time to consider strategic options for this business, … The new MySpace has been very well received by the market and we have some very encouraging metrics. But the plan to allow MySpace to reach it’s full potential may be best achieved under a new owner

Earlier this month the LA Times reported:

The business unit that includes MySpace reported an operating loss of $165 million because lower advertising and search revenues were only partly offset by lower expenses, the company said. News Corp. has retained Allen & Co. to sell the once-hot social network and has attracted multiple bidders, people familiar with the situation have said.

There is also the rumor that we could see a ‘spin off site’. That sounds like Myspace Music will stick around even if the rest of the site crumbles under the weight of it’s own operating costs. Last year I said “MySpace Music is easily the best thing going for the service and it is here that they should build their foundation for the future.” If there is going to be a spin off site it has to be Myspace Music.

How much people will pay for Myspace? What’s the highest bid News Corp. has seen for the site? If it’s operating at a loss of 165 million dollars wouldn’t it be enough to just take it off of News Corps. hands?

If there is going to be an auction for Myspace I want in. I’ve got 20 dollars in my wallet right now and I am more than willing to spend all of it to own Myspace. Heck, let me run the site for 6 months. What have you got to lose?

-Creighton