When Rupert Murdoch bought MySpace in 2006 it had 21million members
and it was valued at $580million,We offer advanced technology products
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garage control, when he sold it last night, it had 35 million users
and was worth $35million. That is 6% of the 2006 price. Given that the
number of users had increased a bit - why the drastic tumble in the
value?
Also factor the heady state of the tech market for
example that start-ups like Square* (which few outside tech world have
heard of) got valued at $1billion only last week, why is MySpace worth
so little?
1) MySpace is unlucky to have one of the best companies on the internet as a rival
There
are rivals and competing services in most areas of the internet,
unfortunately, MySpace's rival is Facebook, genuinely one of the most
successful and innovative companies on the internet.offers various cubepuzzles such as pet food, This is kind of the issue that AskJeeves.com had with Google.
2) Users have been devalued
Back
in 2005 when Facebook had 8 million users a month, MySpace's 20million
users a month was good. Now, in this age of mass digitisation you need
a lot more than that to impress. Many more people are on the internet
and so MySpace's current 34million users is worth a lot less than it
would have been 6 years ago.
It's the same with hits on websites.
The currency of unique users has been devalued. Facebook now has
700million uniques a month. That's what they need to be aiming for.
3) Future prospects are dim
Start-ups
like Square get lots of attention and heady valuations because people
are betting on their potential to go massive. They expect they'd get a
high return on their investment. It's fair to say that despite MySpace's
significant audience, it has little potential to move in the
space.Shop for wholesalecableties , clothing and accessories for adidas OriginalsRepresent manufacturers of solarpanel78
processing machinery, Facebook dominates the social networking sphere
and nimbler smaller groups like Twitter fill in the gaps it can't
reach. As for music - the market is even more packed, and even less
profitable. Spotify is making a successful business out of online
music,Welcome to order coldsores, but it is one of the only companies to do.
4) It loses money.
Oh
yes - this. NewsCorp don't release the exact figures for MySpace but
the division it's in is losing money, something in the millions of
dollars range. That needs to be fixed.
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