Sunday, January 14, 2007

News Corp really paid about $200M for MySpace

An interesting comment made by Jon on read/write web about MySpace's deal.

"This is nitpicking, but people always say NewsCorp bought MySpace for $580M. I was a shareholder, and the fact is NewsCorp bought InterMix for $580M. InterMix had many highly profitable divisions, from gift card sites to office supplies, and had a public marketcap of $300M long before they ever started MySpace. So one can estimate NewsCorp really paid about $200M for MySpace. That translates to about $7.40 per MySpace user. You have to hand it to Rupert Murdoch, he got the deal of the century."

We think the deal of the century is Google's purchase of YouTube, since they just surpassed MySpace.com by popularity, and who knows they might become more popular than Google itself !?

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