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Summary:

By Robert Young In the latest (July) issue of Wired magazine, Rupert Murdoch claims that Google… “…could have bought MySpace three months before we did for half the price. They thought, ‘It’s nothing special. We can do that.’” So that means Google could have acquired MySpace […]

By Robert Young

In the latest (July) issue of Wired magazine, Rupert Murdoch claims that Google…

“…could have bought MySpace three months before we did for half the price. They thought, ‘It’s nothing special. We can do that.'”


So that means Google could have acquired MySpace a year ago for about $290 million. Talk about a strategic blunder… the thought of Google and MySpace, combined, boggles the mind. Instead, Google is left thinking of what could have been. And to add insult to injury, it may turn out that *not* acquiring MySpace may end up being more expensive for Google!

As widely reported, MySpace is now the largest source of search traffic for Google, accounting for over 8% of their inbound traffic as of early May. That essentially means that MySpace is responsible for about $400 million of Google’s annual revenues. Knowing this, MySpace is trying to capitalize by holding an auction for its search business. If Google wins, it will end up sharing a significant percentage of that $400 million with MySpace… John Battelle thinks the split to MySpace will be close to 90%. And Google would need to pay it every year. Needless to say, had Google acquired MySpace, no such payments would have to be made.

In addition to the real costs that Google is likely to incur, there’s also the opportunity cost. Had Google acquired MySpace, they would likely be ranked the #1 Internet property on all user & usage metrics… nudging out Yahoo! from that top spot. It certainly would have been quite a sight to see… being #1 overall, based on its dominance in search fortified with an even greater dominance in the social networking category. It certainly would have cemented Google’s leadership into a near-ineffable state of invincibility.

Having said all that, I personally believe it would be foolish for Google to pay MySpace anything. Even if MySpace strikes a deal with a competitive search engine, it’s highly likely that the users will simply bypass the default and go to Google anyway.

Robert Young is a serial entrepreneur who played a major role in the invention & commercialization of the world’s first consumer ISP, Internet advertising (pay-per-click ads), free email, and digital media superdistribution.

  1. Google is human after all! Sometimes there’s more to a phenomenom than just the technology behind it.

    However, I read that Bus 2.0 story and gleamed the fact that News Corp still doesn’t know how to make money off of MySpace. So the jury is still out.

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  2. I guess 400*80-90% means $320-360M straight to the bottom line?? Based on current EBITDA numbers- its should add about 7-8% to the total figures.

    If you add traditional display ads sales it could go up even more to more than 10% of EBITDA. I think Myspace is beginning to make an impact on Newscorp. Not sure if the NYTimes article over the weekend (http://www.nytimes.com/2006/06/25/business/yourmoney/25frenzy.html?ei=5088&en=83d3816749d83ec4&ex=1308888000&adxnnl=1&partner=rssnyt&emc=rss&adxnnlx=1151421606-rgCcrD76 QrHmkJ///PT2A) holds water…

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  3. I’d imagine News Corp has no clue how to make money off of MySpace because News Corp is large, slow, and everything that embodies big business, where as the people that congregate on MySpace are the exact opposite. Corporate has never really figured out how to deal with anti-corporate properties.

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  4. Larry, that’s what the jest of the whole article. Give News Corp credit for getting their hands in the internet and buying MySpace. They are taking a “corporate hands-off” approach to wrestling the beast. They don’t want to upset it.

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  5. I suppose Google should have just paid the measly quarter million dollars for the potential. It’s not like they were betting the farm of $2 billion like EBay on Skype. In fact, in comparison, what a golden deal.

    sorry, I just can’t get over the skype deal

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  6. I expect that three years from now everyone will still use Google as a search engine. I do not have the same confidence in MySpace.

    MySpace has taken social networking to new heights, but social networking it remains. If News Corp. does not make its money back in the next two years, I expect they never will. Remember, Traffic /= Sustainable Business Model.

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  7. JustTheFacts Tuesday, June 27, 2006

    I’m not so sure it was a bad idea not to buy MySpace. The company is still not profitable, it is a public relations nightmare (may have even alienated some of Google’s current advertisers), and there is no indication that something revolutionary will come of out more than banner advertising. If you add Blogger to Google they already are number one, so no-one thinks like that and wouldn’t even if they bought MySpace. Finally, even you yourself say that Google should not pay anything because that 8% is just due to the large volume of traffic. If MySpace never existed those same suers would still be using Google. So…not sure why your post is titled coulda woulda shoulda…

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  8. Google was/is smart. Yahoo bought GeoCities. BFD. Lycos bought Tripid and AngelFire. BFD. Excite bought Bluie Mountain Arts. BFD. Google knows that personal homepages — ooops, I mean User Generated Content — is a vast hole into which one throws copious amounts of brainpower and money and resources and out of which one gets porn, spam, and lawsuits from angry people. No search engine or portal has ever made a dime off this stuff and Google knows it and is keeping its eyes on the ball, unlike News and Murdoch, who famously have always been willing to throw huge sums of money at seemingly nutty stuff (some of which turns out to be hugely valuable like the Fox TV network), and especially when they have to play catch-up.

    Plus ca change.

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  9. heyisforhorses Tuesday, June 27, 2006

    You have not made your case for why this is a blunder move by Google. $290m divided by earnings of $0 or negative gives you a pretty crappy P/E. Why should Google shareholders be upset about this? These kinds of posts remind me of the stuff written during the bubble. There’s no justification for buying it at even $50m if it can’t make money.

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  10. MySpace is the crappiest looking site I have ever seen. It will have to go away one day. If it does not go away, then there will have to be a complete overhaul of it. The coding on its pages is horrendous. The videos and songs that start by themselves at volume levels that are way too loud are horrible. The color schemes that cause the text to be unreadable is awful. There are way too many problems with MySpace. When all the kids that are using it grow up, they are going to want something more sophisticated. I am glad Google is not associated with a website as tacky as MySpace.

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  11. Jacob Varghese Tuesday, June 27, 2006

    Uh Steve, you do realize that Google owns blogger.com – user-generated content.

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  12. Everybody knows Myspace is the most huge place of trash/garbage pages on the net. Dozens of pages are generated by bots, linked/invited to other bots. 98% Bulletins are also automatically generated, so Myspace is a traffic-eater spam-nest of the promoter bots.

    I’m very happy and I’m not shocked why Google isn’t buy that ‘service’. Who wants to buy tons of traffic of spam generated by bots? MySpace can live because everybody can create really ugly, chatotic, mindless BUT custom pages with 3th party tools – they are totally useless. I’m sure if google buys this stucked piece of hell then advertisers money also go in to the trash and shareholders also may think ‘what’s wrong with Google?’.

    They will create/buy their own “MySpace” if it’s really important.

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  13. Brick Hamlin Tuesday, June 27, 2006

    I agree with heyisforhorses – loud, attention grabbing headlines are not why I read Om’s blog. That’s what I expect from my local news and Fox News – the bait n switch. I continue to read here because I expect not to get that kind of attention hogging but lack of substance stuff.

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  14. Uh… I’m pretty sure google is still thinking… “We can do better”

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  15. Social networking is the way of the future, but walled gardens like MySpace and TagWorld definitely aren’t going to cut it.

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  16. MySpace should just buy us instead. Google won’t help them leverage their customers like a social searching platform will. We just launched a new site today at http://www.searchles.com . Social bookmarking with an emphasis on social, and soon it will be integrated with our search engine http://www.dumbfind.com

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  17. Has Google started GSpace yet?

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  18. I’m very happy and I’m not shocked why Google isn’t buy that ’service’. Who wants to buy tons of traffic of spam generated by bots? MySpace can live because everybody can create really ugly, chatotic, mindless BUT custom pages with 3th party tools – they are totally useless.

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  19. If my job was to purchase myspace (if I was any company) I would also pass. It is a terrible mess of code, written in a mix of cold fusion and ASP (they may have got rid of CF completely by now). It needs a full rewrite IMO.

    Google could make it’s own using all of the libraries they have available and use on most of the google owned webpages. If they wanted to, they will do it. They have enough user base to populate it too.

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  20. I’d rather Google not be associated with MySpace. I don’t think it was a blunder, I think it was a smart choice. Things like MySpace come and go in a matter of years – I give it 2 more years before it dies (don’t quote me on that).

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  21. heyisforhorses… so it is tough to say that there is no revenue at myspace. i think there is revenue – estimated to be around $200 million in 2006 according to some analyst estimates. that is better revenue than say a google base or whatever.

    I think the point is that, if they had bought myspace, they would have more lock in on the traffic that comes from myspace. what if, microsoft becomes the preferred search partner at myspace?

    i bet, if they did buy myspace, they could have monetized it better. look at how effective Google is on Blogger.com pages and other pages on their site.

    of course all of you remember google trying to create their own social network – orkut. that did not go anywhere.

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  22. Just to add further to the previous comment – well had they bought MySpace – and had MySpace continued to zoom up like the way it has – imagine how many million more customers/users for their floundering products such as gtalk.

    or how about using that MySpace base to get more gmail users. (GMail is a good way of making them ad dollars.) maybe it doesn’t have to be an obvious answer all the time.

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  23. uh, dudes, i read that same article earlier today and you have got to remember two things that are very important: 1) rupert is a spectacle in constant need of market affirmation and 2) the claim which he made, upon which the entire post and thread is based, is completely unverified and wholly unsubstantiated – as fascinating as it is, wired didn’t even bother to follow up on it (so what does that tell you?)

    remember, al gore invented the internet too…

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  24. Actually, Google has a social networking site for a long time now: Orkut. Like GMail, it’s invite-only; an enormous hit outside the US.

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  25. So who has a MySpace page, and uses the search from within that page instead of going out to google anyway?

    Even if google powered the MySpace search engine, I’d still open a second window or tab, even, to google for searches…

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  26. Saying that Google passed on MySpace because they thought they could do it better is speculation. While I honestly think they probably could do it betterI don’t know that would be the main reason not to buy MySpace. Additionally you mention that Orkut has gone nowhere, but that is entirely untrue. Orkut wasn’t popular in the U.S. but it was incredibly popular in other countries, especially Brazil.

    The reason that I wouldn’t have purchased MySpace is that there is a very real and expensive backlash starting towards MySpace. There have been predictions this would happen since before Murdoch bought the social networking site. We are just now starting to hear about the problems MySpace is facing. A girl suing the site for $30 million because she wasn’t protected from her own stupid actions. Law makers wanting to regulate the site and make its operators liable for what is posted on the site. I would be willing to bet that over the next few years that these costs if unchecked will easily outpace whatever ad revenue is generated by the site.

    There is one other thing to consider. MySpace is a fad site. It has a limited lifetime and trying to figure out what that lifespan is could be why google passed. Many of the people that helped to make MySpace popular have moved on to other social networking sites, many of them much more private (where orkut started from). With employers, schools, and others watching what is being posted on MySpace there is less incentive for people to post there.

    Additionally the site has been invaded by commercial interests. Porn peddlers, dance clubs, and advertisement accounts are increasing at a significant rate. This was unavoidable due to the ease with which you can get into the network with MySpace. If anything MySpace has brought social networking to the masses and has opened the doors for private, or closed networks to flourish due to the lashback at MySpace. Maybe Orkut was before its time and Google realized that when they had the opportunity to buy MySpace.

    Of course just like everything else in this article/thread it’s just speculation.

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  27. Orkut is ONLY a “hit” in brazil. I would not call it enormous in any way…

    Hack away at MySpace all you want. It just shows why so many Social Network sites fail to succed. There is very little understanding in the tech community on what makes something interesting to the users. It is not about the technology or functionality.

    We can argue all day that MySpace sucks and that it is ugly. The fact is that it is still growing, and it is becoming the MTV of this generation.

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  28. MySpace is a social cesspool that exemplifies everything that is wrong with both the internet and the current crop of young people in general. Google did the right thing to steer clear of it.

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  29. The new google service will be called GSPOT by the way…

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  30. And for those of you who hate MySpace, you sound a lot like the people who hated the internet for being a “cesspool.” Murdoch is absolutely right not to try to monetize too fast. He needs to build even more user lock before he starts rolling out premium services, targeted ads, etc.

    Having heard more than a few companies giving out myspace addresses in youth targeted ads its only a matter of time before it starts costing money to set up a corporate myspace account.

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  31. Let me provide some additional anecdotal evidence that MySpace was a good property to avoid. I work in the IT staff for a University of around 20k students. During the fall semester nearly half of the traffic going to student housing was for MySpace. During the spring semester (the one that just ended in May) that dropped by almost 20% and the gaps were filled in with other sites, predominantly facebook. MySpace is loosing its cool factor with this generation. The thing about the MTV generation is that their attention spans are short. A sure fire way to ensure that more of the youth market flees the site is by making it more corporate.

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  32. MySpace is for children and morons, Google is better off without it. Perect buy for Murdoch though, his audience is made up almost entirely of morons.

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  33. Orkut is also a big hit in India.

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  34. I’m sorry, but don’t you think that the MTV of this generation is a far step from what you are attempting to argue.
    It (MySpace) is still growing. This only means more kids are getting into it with their friends. Although there are adults on there, if you go look most of them are trying to promote something like bands or modeling pictures. Kids grow out of it as soon as they get cars and get jobs. MySpace will be grown out of most of the sane kids of this day and will be replaced with lives and money along with relationships.
    The only reason it may succeed longer than anyone may expect is because more and more kids are getting connected to the internet earlier and earlier, there are kids on there that can’t be over 9. In registering you have to simply say you are 13 or older and you get an account. It’s simple and I’m not suggesting making the age 18 and have a credit card or something, I am simply pointing out the fact there is no way to know.
    Those kids will grow and more will get into it, somewhere down the line it may fade for many reasons, but we don’t know what will happen now will we.
    As for Google not buying it they could do it better and possibly failed, simple. If they really tried I know they could do better they have the people with the intelligence and ect. This brings up the question do you want them to spend money on trying to build another empire and wasting it because it will end eventually as all fads do, something better will come out or attention will be diverted to another technology, a newer better possibly virtual technology.
    In the long run they didn’t know they were gonna somehow get hit with a loss, but at the time I’m sure they knew that it probably wasn’t worth it then. A $290 million dollar fad.
    Although that is just my opinion.

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  35. Myspace won’t last. So it hardly matters in the long run.

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  36. I’d have stayed away from MySpace too.

    Number one reason is that it’s a fad; you have perhaps a year or two to monetize it and get a ROI before it becomes an also ran as teens move on to the next thing. The internet is not cable tv and MySpace is not MTV – the barriers to setting up a competing social networking site are next to nothing compared to setting up a competing cable channel.

    MySpace has fundamental design flaws that will ultimately kill it. It’s too easy to set up spam pages. The pages themselves are too public (as I think many kids are realizing, as parents/teachers become MySpace-aware). The design is fairly atrocious (though that doesn’t seem to bother teens much). Then there’s the inevitable morality police that will raise a ruckus about porn, predators, and listening to devil music.

    My guess, MySpace has already peaked and in another year or two it’s replacement will have emerged.

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  37. I love when people just throw out random statistics that they know nothing about. Example, above someone said:

    “Everybody knows Myspace is the most huge place of trash/garbage pages on the net. Dozens of pages are generated by bots, linked/invited to other bots. 98% Bulletins are also automatically generated, so Myspace is a traffic-eater spam-nest of the promoter bots.”

    While I agree there are a lot of junk pages and bulletins on there, where do you get 98% of them being auto-generated? Do you have a source on that or are you just talking out of your ass?

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  38. Anyone writing on this blog is not even close to being a target of Myspace. And the fact that we don’t understand the bright colours and loud music points out clearly that we can chase teenagers all we want but we can’t reach them with logic.

    Myspace may be a fad, although I doubt it. There may be other players, but like AIM, Yahoo messenger and mSN messenger, they all still hold strong networks of users because it fits into the day to day. Ask a teenager about how they interact with Myspace and you’ll get a better idea why it’s not a fad. It’s not like blogging. They’re not doing it to tell the world that they are smart or clever. They are doing it to make friends (and girl/boy friends), chat, gossip, show their style (or lack of it) and to play.

    MySpace is about play.

    So next time you’re up at the white board wondering how you can reach the teenage market, don’t try and hire Tony Hawk to hold up your product on an afternoon slot, jump onto Myspace and read 50 kids comments. It won’t make sense but it will at least tell you why your old plan won’t work.

    So as for Google and Myspace, well if they want to organise all the info in the world, Myspace presents a challenge (financially) worthy of cracking. Just don’t bring the same tools you brought to web search or you’ll miss the point (and the boat).

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  39. To assume that MySpace traffic and click value is proportional to their percentage of searches misses the mark on the average income level and value and implied intent at search time of the average MySpace user as compared to the average Google user.

    Also, as noted above many times, there are HUGE public relations costs to MySpace.

    Keep in mind Google has Orkut, allows people to post threads on their Finance site, partnered with Nike for a soccer social networking site, has Google Music Search (which may eventually allow them to sell music directly if they wanted to).

    Google can assemble all the better pieces of MySpace while trying to avoid many of the bad ones.

    IMHO MySpace is a fad, and is a smart site to stay away from purchasing.

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  40. MySpace would have been a bad idea for Google. As they say, they can do it better and there is still room for much improvement. MySpace is a PR nightmare waiting to happen (if it hasn’t already) and Google can’t afford to sully it’s image. No question MySpace has the eyeballs now, but they took them from GeoCities which took them from AngelFire. What does MySpace have on GeoCities? Ring-tones? They all still look like crap. There is huge room in that market for innovation. MySpace is a PHP prototype for the next competitor to learn from. Could easily be Google.

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  41. Alex: You’re an IT guy at university. Facebook is targetted towards university students and that’s why you see such a large increase. If MySpace can be cleaned up it would be more attractive to non teeny-bops.

    Facebook is a better system for college students to find friends. I’ve found old friends from high school, gotten contact info from friends which I lost, or never had. For all my years in college, I’ll use facebook. But just like my high school friends, I’ll lose contact/interest in a majority of my college friends and will probably abandon facebook.

    If facebook can attract post-grads to continue using it, then that would be golden for them. They already allow alumnis that graduated before facebook came out to use facebook.

    Also, Facebook has less pedophiles…

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  42. myspace? humm…I think they made a great choice by missing the…errr…uhh…’opportunity’ to buy it.

    Let’s take a look in 12-18 months and see if the mgmt can pull it out of it’s dive into the abyss.

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  43. tomas is right in a way that people don’t ‘get’ MySpace. But just because you ‘get’ it doesn’t mean you can capitalize on it. I would submit that precious few adults are capable of producing fad-worthy products. And fewer still are capable of doing it consistently. You can have some successes with viral marketing and other cutting-edge techniques, but the fact is that the fickle teen demographic are in the process of defining themselves as people. As soon as a corporation learns how to market to teenagers, the demographic changes. Anything a 50-year old suit knows about teenagers is already outdated and hopelessly uncool by the very fact that he knows it! That’s why the top marketing agencies that really have their pulse on this demographic can bill out at $500 an hour.

    If MySpace can hang on to aging users then they might have a long-term future. But teens are going to move to something new, and MySpace is going to stop growing eventually.

    On the surface there would be some value for Google acquiring the userbase, but the technology is horrendous, and Google is a company built on great technology. It just wouldn’t be a good corporate fit. This is the trouble with so many large corporations. All potential deals are evaluated by the numbers. Google has X users, MySpace has Y users, revenues are Z, etc etc. Deals have to be huge to get any attention. But it ignores what made Google successful in the first place: great people and great technology. The number one thing Google needs to do is to continue to attract top talent (which they’re doing). Acquiring MySpace might look good to wall street pundits, but I don’t think anyone at Google is regretting passing on it.

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  44. This is the dumbest, Bubble 2.0 post I have seen on this blog in a while. I count on people who do this for a living to think more concretely.

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  45. I personally use Myspace. Honestly when I heard ealier this year about the buzz of myspace I declined to even bother caring. However with a webdesign job I have with a record label that was one of the first things I was asked to do was get a page up on myspace. I being a decent webdesigner declined initially because thats stupid to jump on a fad bus. I offered him a full site revamp, new logo, new design style, and decent XHTML and CSS code to use and he said thats nice but I really want myspace up. Now when he pumped up his myspace page how many people do you think have access to him now… thousands roughly since its an local label but now that you have that place when people want more real info about the “band” they are gonna goto your own website which has failed to even hold up design standards. You just lost customers cause your page sucks because of poor understanding of brand, design, and research.

    I think google made a smart choice by staying clear even though I use myspace to network and find old class mates I by no means even care for the crap besides that. If the right company with the right tools and marketing came out with a new app or widget it would blow myspace out the park. However they have better things on their mind. I can’t blame em…

    This feels so much like the late 90’s again…

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  46. Sometimes you have to consider image, and (to many) myspace has a very negative image, while Google has a very positive one. Myspace is bloated with ads and server issues from dealing with the countless users. Google has a million projects (though most in beta) for nearly every possible topic, and I’m constantly discovering new ones. They run the business intelligently enough that the “average joe” doesn’t really consider where they get their money from, whereas it’s all too obvious on myspace. Ads should never be intrusive. I think if Google made a personal networking site, they would actually do it correctly, and millions would switch to it in the first month.

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  47. whats the thingy i have to type to get myspace?

    sorry i am new, just got internet

    Jenny

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  48. Sounds like, “The One That Got Away”…

    Oh well…

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  49. Why exactly hasn’t a competitor built a working version of myspace. My god talk about a buggy site. I have tried to view myspace pages but it is too frustrating.

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  50. I’m sure FIM have a plan or, two that will prove most successful.

    It’s now a wait & see.

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  51. Om, this shows your range;

    Jenny said;

    whats the thingy i have to type to get myspace?

    sorry i am new, just got internet

    Jenny

    Jenny – here is the address you need;
    http://www.myspace.com

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  52. It will be interesting to see how Myspace monetizes its popularity (apart from ads). Another monetization opportunity for them is to broker p-2-p e-commerce. Someone who has 20mm profile views could sell a video, album, book or even tickets to a show and Myspace would facilitate this for a commission.

    If this is a way to monetize, that means Newcorp will also be in the market for a payments engine. Or will EBay and Newscorp have only one thing (experiments with expensive acquisitions) in common?

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  53. Google certainly doesn’t need the myspace headache, sure of they were together they would have an unstoppable 1st place on the page views of th net, but google is doing just fine where it is at. I also think that google taking over myspace may hvae made it more conservative than murdock has, and therefor would have ruined the space making people make a mass exodus to competitor portals like yahoo’s 360.

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  54. can’t believe how many people on this comment thread have their collective head up their arses. MySpace was a F’ING FANTASTIC deal for News/FIM. Anyone who passed on that deal feels like an IDIOT right now, i guarantee you.

    metrics don’t lie. MySpace isn’t in the top 10 Internet properties for both visitors & traffic for no reason. if it’s a fad, it’s a pretty goddamn successful fad folks… and check out eBay for a portal with lots of unwashed masses with incredibly fanatic user base. Facebook might be the only property with a more frequent user visit profile, but MySpace ain’t too shabby either, and it’s 10x as popular.

    doesn’t matter how crappy the demographic is with those kind of numbers. and if you think they won’t figure out how to monetize it, you’re completely misunderstanding the negotiating power behind these kind of numbers:
    http://weblogs.hitwise.com/bill-tancer/2006/05/myspaceis1googletraffic_so.html

    MySpace is worth tons of money in the same way that AOL was worth enough money for Google to outbid Microsoft on the deal and throw down $5B (investment) on the spot.

    get over yourselves on this one. MySpace is not GeoCities or Tripod or Broadcast.com. MySpace is a reality, and even if they jump the shark and growth starts falling off, it’s STILL going to be worth a crapload and while there’s some risk the audience shifts to other services, i seriously doubt that much traffic gets completely displaced over night — at this point too many people have embedded their photos, comments, friends, personality, and other life essence for it to just go away. it might still fade away, but in any case it’s already been a GREAT deal for News that has put them on the playing field.

    all you armchair analysts need to get a clue. betting on the future downfall of MySpace & the lack of monetization as good reasons for Google passing on the deal strikes me as the Internet version of sour grapes.

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  55. email is for communicating online. the rest of the internet is business related. also – why should anyone link all their friends together.

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  56. also – google does not go around buying everyone’s websites, no matter special the website thinks they are. they know everyone will come running to google, saying please pay me.

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  57. me myself and i Friday, July 7, 2006

    myspace users want an environment to talk to friends and meet new people. we do not want it sucked up and turned into a profitable website… free sites are always ruined when people try to make a buck out of it… turn it into advertising and marketing crap… just give me the site as it was originally created… im glad google passed up on the deal. they were smart. no one goes on myspace to look at teh ads… how stupid

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  58. I don’t believe myspace is going anywhere anytime soon- Why? Because myspace is a place for Exhibitionism- People will do anything to be seen and given attention and Myspace is the accepted medium for such behavior. Would these people pose half naked for a passerby on the street? Probably not. But yet they post pictures of themselves doing just that and let complete strangers in on even the most minute detail of their lives.We live in a world where 99% of the public is retarded and a corporate world that NEEDS it to stay that way in order to keep making money. I’m glad that Google has chosen to keep its reputation in good standing and I agree it was the best choice that in the long run would be more profitable as well.

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  59. Nice article… and thanks for the info…

    As you say, according to most management perspectives… it does seem, and in fact may be a strategic blunder..

    But for all big corporations, just like in politics, it is imperative to have a strong “so-called opposition” for their survival so as to retain their position..

    Now, this is something most corporates or even politicians can afford, because if they slip.. they are history

    When you can pay someone to retain their current position, don’t you think that this is a small investment..

    As they say, once you know your enemy, it is better to treat him as your friend… [not that they are enemies, but in this case it is the competiiotion]

    Well.. who knows… it is too big for us to comprehend !!

    I have clipped a piece of this article for my blog and back-linked you with a courtesy… [with your permission]

    Cheers

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  60. Myspace will fade away, yes, that is a given.

    I predict that the new users will abandon it quite soon actually, because it has lost it’s appeal as the millions have clouded the site with the pictures of thirteen year olds smoking blunts, the endless stupid surveys, the rediculous bulletins. The reason that it has lasted this long, and the reason the people that have had it for a few years stick with it throughout all of its problems is that it is a way to communicate that is MUCH easier than email, and less one-on-one than the telephone and instant messenger.

    It isn’t just a site for people to take the classic “myspace pic” but for people to keep in touch with the people they already know on a day to day basis. Comments offer a way to share messages. Teens and preteens just do not like email.

    So until a new site comes along that offers the ease of use that myspace has, it will stay relavant.

    Was it a good idea for google to keep their hands off? Of course. Google is a bit too classy for fads such as this, no matter how relavant to the times. And those stupid fourteen year old kids everyone talks about? No way would they even think to type into the search box through myspace. New tab, google.com. Always. And with all the bad press that myspace has gotten because of adolescent stupidity, Google is wise not to have their name attatched to that. Not every one knows what goes on behind the public eye with corporate deals, but Soccer Moms know the name Google, and soccer moms are afraid of myspace.

    But it is an interesting comparison to MTV. What has MTV with the best intentions become but a cesspool for Laguna Beach and Date My Mom.

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  61. What is interesting is how the deal between google and myspace gives us an insight into what we can expect on the mobile side

    http://www.thumbgen.com/2006/08/07/myspace-and-google-deal-how-does-it-applies-to-mobile/

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  62. I think google should just develop thier own site called googlespace. Myspace is too slow. They need a company like google to run them. Im sure its only a matter of time before google goes and makes thier own that overpowers myspace…

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  63. [...] không nhận ra sức tăng trưởng “khủng khiếp” của mạng xã hội này, bỏ qua cơ hội mua MySpace với giá khoảng 290 triệu USD, để rồi phải mua quyền được quảng cáo trên [...]

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  64. not at all a blunder, myspace doesn’t make much money, plus it can easily be copied. blogger is similar anyway…

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  65. [...] year ago, I had written that Google woulda, coulda, shoulda bought MySpace when it had the chance. How interesting a twist of fate if Google ends up buying Facebook instead, [...]

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  66. [...] Rupert Murdoch famously claimed that Google could have purchased MySpace for half of the $580 million he paid for it but the search [...]

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  67. [...] YouTube Effort Informed by MySpace Pass? By Greg Sterling Rupert Murdoch famously claimed that Google could have purchased MySpace for half of the $580 million he paid for it but the search [...]

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  68. [...] Una percentuale non trascurabile del traffico in entrata verso Google (8%) proviene da MySpace. Per Google significano 400 milioni di dollari di entrate all’anno. In futuro MySpace potrebbe cercare un accordo con il motore di ricerca e monetizzare l’utenza che riesce a spingere verso Google – http://gigaom.com/2006/06/27/google-and-myspace-woulda-coulda-shoulda [...]

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