Mashable - The Social Media Guide - Latest Comments in MySpace for 25% of Yahoo=Bad Deal

Re: MySpace for 25% of Yahoo=Bad Deal

Mel — Wed, 20 Jun 2007 16:44:58 -0000

Currently, Yahooâ€™s market cap is around $36 billion, which is around 6x the yearly revenue. Using this multiple, Myspace is worth around $3.6 billion based on $450 million in revenues and Facebook is worth roughly $900 million based on $150 million in revenues.

If Yahoo could negotiate better terms say 10-15%, this would be a good deal. Regardless of the usability, Facebook is not close to catching Myspace in terms of unique visitors.

Re: MySpace for 25% of Yahoo=Bad Deal

DinoHorse — Wed, 20 Jun 2007 13:38:59 -0000

My Space has become a nest of infection. Too much spam and too much nonsens.. I really wonder what Yahoo is willing to bring to the table here, other than just having some power over their users.

Re: MySpace for 25% of Yahoo=Bad Deal

Berlin — Wed, 20 Jun 2007 13:02:24 -0000

Stupid move for Yang if he agrees with it. Yahoo will fall and Microsoft will take the second spot after Google.

Re: MySpace for 25% of Yahoo=Bad Deal

Butler — Wed, 20 Jun 2007 09:23:23 -0000

I think Jerry might not have been liking this move which might have forced his move back into the picture at Yahoo last week.

Re: MySpace for 25% of Yahoo=Bad Deal

Vygantas — Wed, 20 Jun 2007 05:26:36 -0000

...

That's not cool at all. MySpace will die soon, why the ... Yahoo want to buy it? If they don't know what to do with that money, better buy 25% of FaceBook which will be giant soon.

Re: MySpace for 25% of Yahoo=Bad Deal

Aseem Badshah — Wed, 20 Jun 2007 05:24:32 -0000

Andy, you do make a good point. Seems like an odd strategy to make one big change instead of continually evolving, at least in today's Web 2.0 world. Maybe there is something HUGE behind the curtain. I guess we will wait and see.

Re: MySpace for 25% of Yahoo=Bad Deal

benn achilleas — Wed, 20 Jun 2007 04:44:12 -0000

i think they wasted money buying MySpace in the first place. I mean what have they done with it since? analogy: if you bought a nightclub because it was the best around, would you leave it alone or watch the other nightclubs, see what they are doing, look to add new services and deals to your consumers to encourage their friends, improve the experience etc?
right now it looks like MySpace is the nightclub that is playing the same tunes as when it first opened... except that the only people left dancing in there are the people who love it for being 'their first nightclub'.
If they don't change the 'music' soon they will be playing to an empty dancefloor.

Re: MySpace for 25% of Yahoo=Bad Deal

Andy Rosillo — Wed, 20 Jun 2007 04:21:51 -0000

12 billion might be the right price, but not for MySpace, can 12 billion be the right price for Facebook?

MS, YAHOO or even GOOGLE can spend that kind of money, but why acquire MySpace when you can acquire Facebook.

on the other hand....

Does anyone out there really think MySpace is just going to sit there? They have to be working on something, they have the money and resources to re-invent themselves. The site has not really changed much in a while, although there are subtle changes that have been deployed recently.

Is there a new version of MySpace coming? Will it make MySpace more attractive than Facebook?

Facebook is attractive and promising because of their technology and API. MySpace is attractive because....?

I wonder.....

Re: MySpace for 25% of Yahoo=Bad Deal

todd — Wed, 20 Jun 2007 03:49:16 -0000

Agreed, facebook is about to catapault i think. Last year starting in about feb/march EVERYONE i knew got on myspace (i'm in my mid-late twenties, myspace and facebook were not a college staple)

I was getting friend requests daily from every person i knew, met, been acquainted with, etc etc

And just in the last, i'd say, 3 weeks... its been like that all over again with facebook. That explosion effect is starting there. (And of course i mean w/ the post college crowd, which is quite massive)

Anyways, no real comment on the yahoo/newscorp thing, just an observation of the post-college tipping point for facebook.

Re: MySpace for 25% of Yahoo=Bad Deal

Aseem Badshah — Wed, 20 Jun 2007 03:49:07 -0000

Why all the ridiculous rumors about Yahoo lately? Remember when Microsoft was going to buy Yahoo?

Re: MySpace for 25% of Yahoo=Bad Deal

Beyondwww — Wed, 20 Jun 2007 03:32:15 -0000

You are very right Pete 25% of Yahoo is too huge for Myspace. And it might not be the time to go for Myspace as facebook will be taking over it soon.I am just wondering what plans they have for Myspace? its already so commercialized unless they have plans to introduce surveys on it.