This page has been archived for historical purposes. For current content, visit us at www.freewilliamsburg.com

« Sale of Unocal a huge threat to national security | Main | Nominees for the 2005 Mercury Prize Announced »

MySpace bought by Mr. Burns - time to switch back to Friendster

murdoch.jpg
Murdoch buys MySpace for 580 mil

From NY Times
News Corporation Buys an Internet Company By RICHARD SIKLOS

Asked if spending $580 million to buy an Internet company whose chief asset was created only two years ago gave him pause, Rupert Murdoch said: "You bet."

But after announcing the transaction yesterday, Mr. Murdoch, the chief executive of the News Corporation, said he was won over after meeting the entrepreneurs who run the company, Intermix Media, and studying the surging popularity with young consumers of its prime asset, MySpace.com.

MySpace.com is a social networking site that has grown to more than 16 million monthly users, and features the equivalent of home pages created by 200,000 music groups, big and small. Its users spend hours exploring areas devoted to personal classifieds, music, blogs, video games and chat rooms.

It swept past all the other people in this space, in particular by embracing music," Mr. Murdoch said.

Several prominent music groups - including the Black Eyed Peas, R.E.M. and Nine Inch Nails - have introduced their latest releases through MySpace. Major companies, including Procter & Gamble and Sony Pictures, have advertised on the site, and NBC previewed the comedy "The Office" there earlier this year, several days before its debut.

According to Nielsen/NetRatings, MySpace drew 12 million unique visitors in the month of June and ranked sixth among all Web sites in terms of page views, behind Yahoo, eBay, MSN, Google and AOL.

"They haven't spent a penny marketing - it's all viral," said John Tinker, an analyst with ThinkEquity Partners in New York who follows Intermix. "And they haven't spent a penny on content. It's a good model."

Intermix's other businesses include Web sites with names like grab.com and flowgo.com, which offer games, cartoons and other entertainment.

The deal for Intermix comes immediately after the formation of Fox Interactive Media, a unit within News Corporation that will include Intermix as well as sites like foxsports.com, foxnews.com, and fox.com.

The addition of Intermix to News Corporation's Web operations will nearly double the company's Web traffic in the United States to 45 million unique monthly users. Mr. Murdoch said Intermix could grow at least another 50 percent in the American market.

In buying MySpace, the company is following Mr. Murdoch's recent edict that his managers get serious about the Internet.

"This particular group of sites would appeal to young people who are watching less television and reading fewer newspapers," Mr. Murdoch said. He added that the Fox Interactive unit was working on several other acquisitions, though nothing as large as this one.

Intermix gained attention earlier this year when the New York attorney general's office filed a lawsuit accusing it of illegally planting spyware programs on the computers of people who visited its Web sites.

The company has since announced a preliminary settlement of $7.5 million.

News Corporation will pay $12 a share for Intermix, while Intermix said it would buy out minority partners who own 47 percent of MySpace.

Shares of Intermix closed at $10.72 Friday and rose 9.5 percent, or $1.02, yesterday.

MySpace was started in September 2003 by Chris DeWolfe, the chief executive, and Tom Anderson, its president.

Like other traditional news and entertainment companies, News Corporation has had a mixed experience in trying to extend its businesses online.

Part of MySpace's success has come at the expense of similarly conceived Web sites like Friendster, where the number of users has increased rapidly but then declined.

Mr. Tinker argued that MySpace has achieved a level of popularity and critical mass that will be difficult for rivals - including social networking services from online giants like Yahoo, Google and Microsoft - to beat.

Intermix reported earnings of $4.5 million on revenue of $78.9 million in the quarter ended March 31, in contrast to a loss of $12.4 million on revenue of $57.3 million in the period a year earlier.

The agreement is scheduled to close in the fourth quarter. Both Mr. DeWolfe and Intermix's chief executive, Richard Rosenblatt, are expected to stay in their positions.

Comments

omg TOM YOU N00B, YOU SOLD TEH L337 WEBSITE. MERDOOK I WILL PWNZORZ UUU!!!

no good... tom officially sucks..

Were do i find some new MS layouts?

Thanks,
Steve

Time for someone else to win the billion dollar lottery. MySpace is sooo 2004.

myspace sucks now. theres always errors and stuff. i hate it. stupid tom.


Aslong as i still have like a thousand friends who really care about the kind of Manga I'm into then fuck it! Before Myspace I was a nerd.
Now check this out :) that's a smiley!

cant be worse than Intermix - at least Murdoch doesn't put adware on your PC!!!

Post a comment

Verification (needed to reduce spam): Can't read the above words? Click the circular arrows for a new anti-spam test.

FREEdubya on Twitter FREEdubya on Hype Machine
FREEdubya on Facebook Subscribe to FREEdubya
Williamsburg Waterfront Concerts
Happy Hours and Events

W-Burg Guides







Archives


June 2010May 2010April 2010March 2010February 2010January 2010December 2009November 2009October 2009September 2009August 2009July 2009June 2009May 2009April 2009March 2009February 2009January 2009December 2008November 2008October 2008September 2008August 2008July 2008June 2008May 2008April 2008March 2008February 2008January 2008December 2007November 2007October 2007September 2007August 2007July 2007June 2007May 2007April 2007March 2007February 2007January 2007December 2006November 2006October 2006September 2006August 2006July 2006June 2006May 2006April 2006March 2006February 2006January 2006December 2005November 2005October 2005September 2005August 2005July 2005June 2005May 2005April 2005March 2005February 2005January 2005December 2004November 2004October 2004September 2004August 2004July 2004June 2004Nov. 1998 - May 2004


Hype Machine Music Widget MP3 Blogs


Our Books


Williamsburg & Brooklyn Links


New York and Williamsburg Apartment Listings


Music


Peeps We Like



Interviews



CONTACT US:
mail | at | freewilliamsburg.com

Advertise With Us

MASTHEAD:

Founding Editor:
Robert Lanham

Senior Editor:
Brian Ries

Senior Music Editor:
Nicole Wasilewicz

Foreign Correspondent:
Lisa Baldini

Senior Food/Bars Editor:
Fiona Goldstein

Senior Film Editor:
Dave Thomas

Senior Photo Editor:
Clarissa Roudabush

Writers:
Elizabeth Brady
Janice Chou
Lauren Mooney
Andrew Ritchie
Erica Sackin
Jackie Snow
Colin Steers
Lauren Taylor


About FREEwilliamsburg




Add me to your
mailing list



Powered by
Movable Type 3.2




Advertise on New York blogs

blogads-blog-button3.png



Advertise With
FREEwilliamsburg