Murdoch Murders MySpace
If Rupert Murdoch knows at least one thing, it’s social media… right? In 2005, Rupert Murdoch’s News Corporation purchased MySpace for $580 million and, only six years later, sold it for $35 million. That’s some good business right there. Wait, 35 is lower than 580.. who wrote this script? I’m going to lose my credibility for this.. <sigh> What led to the fall of MySpace was a combination of heavy competition from Facebook and Murdoch’s inability to monetize the platform without alienating its users. Facebook was running on an ad-free campaign, allowing users a cleaner social networking experience. Murdoch went into MySpace overconfident, claiming it would do “$1 billion of revenue and $250 million in profit.” Instead of those astounding numbers, former MySpace co-founder Chris DeWolfe, blames Murdoch for squandering $15 billion of shareholder money.