News Corp Buys Myspace for $580M

bambi reports that news corp bought intermix, the parent of myspace, for $580m today. i have to admit that i passed on buying intermix stock a while ago at $6 because i thought that the overall valuation was too high for just the myspace asset. given the reported revenue numbers for myspace of around $9m, this had to be a highly strategic acquisition. i had thought recently that someone like viacom might be myspace or the facebook to add to their mtv properties as these sites are starting to aggregate such large young audiences. this looks like a nice fast exit for redpoint which i believe funded myspace a year ago at a $50m valuation. not sure how this worked out for them but guessing they made at least 5x, which would probably be about $50m on $10m.

8 thoughts on “News Corp Buys Myspace for $580M

  1. links for 2005-07-19

    Stealth Campaign: Metroblogging Wants to Rule the World :: (tags: blogs blogging business metblogs metroblogging losangeles) Mark Pincus…

  2. Rumor has it that myspace is coming out with a better version of there site on another domain name starting march 1st it will be another social networking community site with alot more features. I guess to stay ahead of other sites coming out like also i heard it will be called i guess well just have to see if friendwise happens.

  3. Ya I still cant believe it, I mean they only get paid for advertising and really the ads are not getting there RTI but they do it anyways.
    It’s a lose lose

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