The rise and fall of MySpace is one of the most spectacular internet business affairs and case studies of the younger internet history. The site has been a pioneer of the social media movement and had a growth rate comparable to Facebook and Twitter in that time by 20 million new users each month in the USA alone. Then the service became bought by News Corp. for an often controversially discussed price.
At this point one may start to discuss the reasons for the fall and displacement by Facebook following soon. The site became enriched with commercial content and productions made for the audience. On the other side there has not been a technological development to keep pace with the new competitors Facebook and Twitter. The perception of the importance of social networking facilities came late and by this the implementation of live news streams and status updates happened only when the site already struggled. That the latter happened is contrary to the idea of just let things flowing and thinking about a cash cow to make money during good times. Lately MySpace became sold to Specific Media, a vertical ad network primarily active in the entertainment sector, for just 35 million and by this for a fraction of the price of acquisition of 580 million. Despite of this difference it has not been a bad business, which gave reason to think about the cash cow idea. At its best time the service generated an advertising revenue of 605 million and even for this year an advertising revenue of 183 million US dollars worldwide is estimated.
Below are an article discussing the business and resources by Specific Media about the deal.
Specific Media Resources: