Myspace purchase a 'huge mistake': Murdoch

Oct 21, 2011
News Corp. CEO Rupert Murdoch addresses a crowd on October 14 in San Francisco, California. News Corp's purchase of Myspace was a "huge mistake" and the social network was mismanaged "in every possible way" following the acquisition, chief executive Rupert Murdoch said Friday.

News Corp's purchase of Myspace was a "huge mistake" and the social network was mismanaged "in every possible way" following the acquisition, chief executive Rupert Murdoch said Friday.

Murdoch, addressing shareholders at the media and entertainment company's annual meeting in Los Angeles, said .'s 2005 purchase of Myspace for $580 million was seen as "fantastic" at the time.

"We paid $600 million," Murdoch said. "We could have sold it for $6 billion a month later."

Myspace, however, was quickly eclipsed by , which has grown to more than 800 million members as Myspace's numbers have dwindled.

"I made a huge mistake," Murdoch said of the Myspace acquisition.

"We then proceeded to mismanage it in every possible way," he said, adding that "all of the people concerned with it are no longer with the company."

News Corp. sold Myspace in June for $35 million, just six percent of its purchase price, to Specific Media, a digital ad-targeting platform.

Murdoch also defended News Corp. during the meeting from criticisms by shareholders angry about a phone-hacking scandal in Britain that led to the closure of the tabloid weekly The News of the World.

Explore further: Technip, Heerema win third giant Angolan oil contract

add to favorites email to friend print save as pdf

Related Stories

News Corp. seeking $100 million for Myspace: WSJ

Apr 27, 2011

News Corp. is seeking over $100 million for Myspace and about half a dozen private equity firms and companies are expected to submit bids by the end of this week, The Wall Street Journal reported Tuesday.

LinkedIn passes Myspace in US traffic: comScore

Jul 09, 2011

LinkedIn leapfrogged Myspace in June to become the second-largest social network in the United States in terms of traffic behind Facebook, tracking firm comScore reported Friday.

News Corp. puts Myspace on the block

Feb 02, 2011

News Corp. said Wednesday it was exploring a sale or other "strategic options" for Myspace, the ailing social network which has been eclipsed by Facebook.

News Corp. board backs Murdoch after hacking scandal

Aug 11, 2011

Rupert Murdoch claimed boardroom backing Wednesday to remain at the helm of News Corp. as he worked to shift attention from the phone-hacking scandal to his media behemoth's healthy bottom line.

Recommended for you

Technip, Heerema win third giant Angolan oil contract

1 hour ago

The ultra-deep Angolan offshore oil project called Kaombo generated the third huge contract in three days on Wednesday when French group Total picked two firms to carry out underwater engineering worth $3.5 billion.

Yahoo sees signs of growth in 'core' (Update)

15 hours ago

Yahoo reported a stronger-than-expected first-quarter profit Tuesday, results hailed by chief executive Marissa Mayer as showing growth in the Web giant's "core" business.

Twitter buys data analytics partner Gnip

18 hours ago

Twitter says it has bought its data partner Gnip, which provides analysis of the more than 500 million tweets its users share each day—to advertisers, academic institutions, politicians and other customers.

User comments : 4

Adjust slider to filter visible comments by rank

Display comments: newest first

Vendicar_Decarian
1.8 / 5 (5) Oct 22, 2011
Why is this criminal permitted to continue breathing?
Isaacsname
5 / 5 (1) Oct 22, 2011
" Haha "

~ Nelson

----

I don't do social media sites, but I looked at myspace for all of 3 seconds before I saw it was crap.
gordonalexander
1 / 5 (1) Oct 22, 2011
Vendicar_Decarian

Precedence.
Glyndwr
1 / 5 (1) Oct 22, 2011
Karma Karma Karma Crimileon - Boy 'en'george

More news stories

How does false information spread online?

Last summer the World Economic Forum (WEF) invited its 1,500 council members to identify top trends facing the world, including what should be done about them. The WEF consists of 80 councils covering a wide range of issues including social media. Members come ...

Patent talk: Google sharpens contact lens vision

(Phys.org) —A report from Patent Bolt brings us one step closer to what Google may have in mind in developing smart contact lenses. According to the discussion Google is interested in the concept of contact ...

Melting during cooling period

(Phys.org) —A University of Maine research team says stratification of the North Atlantic Ocean contributed to summer warming and glacial melting in Scotland during the period recognized for abrupt cooling ...

Australia's dirty secret: who's breathing toxic air?

Australians living in poorer communities, with lower employment and education levels, as well as communities with a high proportion of Indigenous people, are significantly more likely to be exposed to high ...