MySpace will have loses of 165 millions USD during the year
Sunday, May 22nd, 2011
The problems faced by social networking site MySpace is over. The company posted a collapse in its financial results for the year. During the current financial year revenue will fall to 109 million dollars, said authoritative blog about technology techcrunch.com, citing confidential documents of News Corp. – Owner of MySpace. These data were made available to potential buyers of the network, writes techcrunch.com. This statement may be true, given that in November 2010 News Corp. announced the first official to seek a buyer for MySpace. In fiscal 2011 the maintenance of the network will cost 274 million dollars, ie 2.5 times more than the revenue J. Thus, according to official documents, MySpace will net loss of 165 million dollars. At the time MySpace was the star among social networks, which was why News Corp. it acquired in 2005 for 580 million dollars. With the rise of Facebook, however, started the problems for new acquisition by Rupert Murdoch. While in 2007 over 180 million Internet users have an account on MySpace, to February 2011 the number was 63 million. Accounting and revenue – in 2008 if MySpace had sales of $ 900 million, now the amount is 8-9 times lower. Already in 2009, the company launched a massive staff cuts, and last autumn completely changed the concept and went from a “social network platform for entertainment. Managers wanted to attract a larger audience with more music, films and shows.
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