welcome to watchmojo.com i’m your host
ash can and in today’s business school
bid we continue our series on successful
startups and successful companies and we
take a look at one of the most
successful of all time myspace now
myspace com its origins actually go back
to nineteen ninety nine when company
founders crystal Wolfe and Tom Anderson
essentially launched an online file
sharing service now of course everybody
knows what happened in the year 2000 the
Nasdaq collapsed and the hopes of many
startups faded along with it what ended
up happening is that they had sold one
of their companies to a company called
EU nuh verse the universe of course went
on to become intermix and what the two
founders decided to do was launched a
new startup within intermix this startup
took the name of myspace com myspace was
one of the companies that basically saw
to capitalize on the surge in social
networking sites essentially you create
a profile for yourself you upload images
videos music and what not and you create
your own space in cyberspace myspace was
not the first one in the market there
was a company called franceour that got
a lot of investors excited but the
difference between Friendster and
MySpace really there were two
differences in fact the first one was
that Friendster really controlled the
environment it was essentially the
equivalent of a prep school whereas
myspace was a social networking site
that let anything go so if somebody
wanted to say something derogatory they
could if somebody wanted to pose more
risque material they could there was the
equivalent of a back alley essentially
you can imagine which one kids preferred
indeed myspace but myspace became very
successful especially visa vie
Friendster because of a second reason a
lot of local up-and-coming bands that
didn’t exactly have record labels
signing them
right away started to use myspace as a
promotional tool slowly but surely what
would happen would be ban XYZ from
Alabama would upload their songs there
lyrics their images and their tour dates
on myspace slowly but surely their fans
would send those pages to one another
creating a very big viral effect in 2005
News Corporation and Viacom got very
interested in acquiring myspace and in
the subsequent bidding newscorp
eventually acquired myspaces parent
company intermix for a whopping 580
million dollars that was a lot of money
but a lot of people felt that News Corp
had overpaid not really because since
the acquisition myspace has grown over
three hundred percent and is today a top
five media property and almost will soon
overtake Yahoo as the website with the
most amount of page views this year of
course myspace has injured a lot of
criticism because yes it’s true that
essentially some sexual predators have
used the site to learn young children
but myspace give him credit and give
credit to News Corporation has hired the
right people to start to implement some
security measures everything being said
myspace goes down as another example of
a website that recapitalised on some of
the most successful trends of the late
90s many people say that myspace is
really no different than geo cities who
itself got bought by Yahoo for over two
billion dollars so when it comes to the
social networking space for sure there
will be many more players who will
challenge my spaces place atop the
mountain but no one can take away from
the founders that they went on to build
one of the most successful startups of
all time and they’re now part of one of
the most successful media companies well
News Corporation
ash can and in today’s business school
bid we continue our series on successful
startups and successful companies and we
take a look at one of the most
successful of all time myspace now
myspace com its origins actually go back
to nineteen ninety nine when company
founders crystal Wolfe and Tom Anderson
essentially launched an online file
sharing service now of course everybody
knows what happened in the year 2000 the
Nasdaq collapsed and the hopes of many
startups faded along with it what ended
up happening is that they had sold one
of their companies to a company called
EU nuh verse the universe of course went
on to become intermix and what the two
founders decided to do was launched a
new startup within intermix this startup
took the name of myspace com myspace was
one of the companies that basically saw
to capitalize on the surge in social
networking sites essentially you create
a profile for yourself you upload images
videos music and what not and you create
your own space in cyberspace myspace was
not the first one in the market there
was a company called franceour that got
a lot of investors excited but the
difference between Friendster and
MySpace really there were two
differences in fact the first one was
that Friendster really controlled the
environment it was essentially the
equivalent of a prep school whereas
myspace was a social networking site
that let anything go so if somebody
wanted to say something derogatory they
could if somebody wanted to pose more
risque material they could there was the
equivalent of a back alley essentially
you can imagine which one kids preferred
indeed myspace but myspace became very
successful especially visa vie
Friendster because of a second reason a
lot of local up-and-coming bands that
didn’t exactly have record labels
signing them
right away started to use myspace as a
promotional tool slowly but surely what
would happen would be ban XYZ from
Alabama would upload their songs there
lyrics their images and their tour dates
on myspace slowly but surely their fans
would send those pages to one another
creating a very big viral effect in 2005
News Corporation and Viacom got very
interested in acquiring myspace and in
the subsequent bidding newscorp
eventually acquired myspaces parent
company intermix for a whopping 580
million dollars that was a lot of money
but a lot of people felt that News Corp
had overpaid not really because since
the acquisition myspace has grown over
three hundred percent and is today a top
five media property and almost will soon
overtake Yahoo as the website with the
most amount of page views this year of
course myspace has injured a lot of
criticism because yes it’s true that
essentially some sexual predators have
used the site to learn young children
but myspace give him credit and give
credit to News Corporation has hired the
right people to start to implement some
security measures everything being said
myspace goes down as another example of
a website that recapitalised on some of
the most successful trends of the late
90s many people say that myspace is
really no different than geo cities who
itself got bought by Yahoo for over two
billion dollars so when it comes to the
social networking space for sure there
will be many more players who will
challenge my spaces place atop the
mountain but no one can take away from
the founders that they went on to build
one of the most successful startups of
all time and they’re now part of one of
the most successful media companies well
News Corporation
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