Purchase of Myspace was a "huge mistake"
Rupert Murdoch said - News Corp's purchase of Myspace was a "huge mistake". The social network was mismanaged "in every possible way" following the acquisition.
Murdoch, addressing shareholders at the media and entertainment company's annual meeting in Los Angeles, said News Corp.'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 Facebook, which has grown to more than 800 million members as Myspace's numbers have dwindled.
"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 an ad company Specific Media.
| Rupert Murdoch said - News Corp's purchase of Myspace was a "huge mistake". | |
