MySpace Web's 'Biggest Steal'

Despite missing revenue targets, Mashable scribe not afraid to 'wax poetic'
By Laila Weir,  Newser Staff
Posted May 8, 2008 3:22 PM CDT
MySpace Web's 'Biggest Steal'
MySpace co-founder Tom Anderson attends Cosmopolitan Magazine's Fun Fearless Male of the Year Awards, March 3, 2008, in New York.    (AP Photo/Evan Agostini)

MySpace fell short of revenue targets in the most recent quarter, but, Adam Ostrow argues in Mashable, it’s still proven a phenomenal deal since Rupert Murdoch’s News Corp. bought it for $580 million in 2005. Revenues from its unit are pulling close to its purchase price and it’s on track to make more with music downloads, sponsorships and targeted ads.

Even after adjusting its expectations downwards, News Corp. still projects $900 million in revenue this year from Fox Interactive, made up primarily of three companies, including MySpace, it acquired for a combined $1.5 billion. This puts the purchase price for the three at just 1.7 times their projected sales—compared to Facebook, valued at 100 times its estimated sales. (More MySpace stories.)

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