Categorized under JNJ Mobile Inc., Justin Siegel, MocoSpace, MySpace, News Corp, News Corporation
“With a new structure in place, now is the right time to consider strategic options for this business,†Carney said during a conference call with analysts. “The new Myspace has been very well-received by the market and we have some very encouraging metrics. But the plan to allow Myspace to reach its full potential may be best achieved under a new owner.â€
The company has been hinting at this for a while now. In December, News Corp.’s digital media chief Jon Miller said that he was “wrestling†with what to do. While he was impressed with the site’s redesign, a public company like News Corp. can’t support a money-losing product indefinitely, he said. Then, following the layoff of 47 percent of the Myspace’s staff, a News Corp. spokesperson told Reuters that the company was looking at a spinoff or a sale.
Carney made today’s statement after News Corp. released an earnings report that was largely positive but included a $275 million writedown for its digital media business, stemming largely from Myspace. Carney later elaborated on his statement for paidContent:
There’s been a lot of interest, because there’s been some indication we’re pursuing this path. We’ll consider all options â€" not just a sale, it could be a sale, it could be an investor coming into it, it could be us staying in with a restructured ownership structure with management.
We think a fresh perspective would give them flexibility and an opportunity to get a new life consistent with the right-sizing of the product and the costs.
The interest to date has ranged from A to Z â€" from industry players, financial players, foreign to domestic. And that’s without really being out there â€" it’s incoming, we’re not soliciting anything at this point. But we’ll look at all of those. I’m not going to speculate on value.
So … any takers? Google?
[image via Flickr/Gabe Habermann< /em>]
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Companies: MySpace, News Corp
People: Chase Carney
Mobile social network MocoSpace has approached News Corp about acquiring its troubled social network MySpace. While MySpace’s overall traffic has declined throughout 2010, the network does have a large base of mobile suers. News Corp wants to sell MySpace for $50 to $200 million dollars, while MocoSpace’s last round of funding was $6.5 million from Softbank Capital. MocoSpace CEO Jason Siegel says his company intends to raise money to try and meet News Corp’s asking price.
News Corp made its desire to sell off MySpace clear earlier this week, when News Corp announced a $275 million loss for the final three months of 2010, resulting entirely MySpace’s restructuring, relaunch, and devaluing. Losses in News Corp’s “other†divisions surged to $156 million, driven entirely by declining search and advertising revenue at MySpace. Otherwise News Corp’s operating income was up to $1.29 billion for the quarter otherwise, driven largely by its television segments.
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Today a potential buyer has come forward: mobile social network king MocoSpace. The company says they are ready to talk about the future of MySpace. In addition to 'typical' social networking - like connecting with friends or sharing information - the site also offers access to music, chatting features, and browser-based social gaming. With three billion page views per month, the site could be part of the answer to MySpace's struggles of late.
"MySpace was a pioneer in the social revolution and we think their business could be paired synergistically with our offerings," said Justin Siegel, MocoSpace CEO. "MocoSpace and MySpace would be a powerful combo in the social networking world.
According to Experian Hitwise, MySpace continued to be the third-highest social network (week ending January 29, 2011). The site held 2% of social network visits behind Facebook (63% share) and YouTube (19% share). Twitter was the fifth highest social network with only a 1% share of visits.
Overall, Facebook and Google continue to fight it out for the top overall website; so far Facebook is winning with a 10% visit share. Google holds a 7.5% visit share. MySpace is far down the list, at number 18, with a 0.33% visit share (All Categories).
Tags: mobile social networking, MocoSpace, MySpace, social marketing, social networks
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As for the sale, Carey said, “The interest to date has ranged from ‘A’ to ‘Z,’ from industry players, financial players to foreign to domestic and that’s without really being out there. It’s sort of incoming, we’re not soliciting anything at this point.â€
GoMo News is reporting first that one company interested in that sale is Boston-based MocoSpace. MocoSpace is the first and largest social networking site on the mobile web. In an interview with MocoSpace’s VP of Business Development, Casey Jones, over a year ago today, he described MocoSpace as, “as a mobile web community that allows you to chat and share photos, videos, and music with your friends. You don’t need a smart phone to get going on this site; all you need is access to the mobile web. Basically, if you have the Internet on your cell phone, you’re all set. Like other social networking sites, you’ve got your basic profile picture and information about your relationship status, your school, your birth date, and your interests.â€
MocoSpace has about 16 million users and been growing its business model with the sale of virtual goods. The company does have an online presence, but the most valuable aspect is their mobile offerings. MocoSpace last raised $3.5 million in funding back in September, putting their total money raised at $10.5 million.
From the GoMoNews article, MocoSpace CEO, Justin Siegel is quoted saying, “MySpace was a pioneer in the social revolution and we think their business could be paired synergistically with our offerings. MocoSpace and MySpace would be a powerful combo in the social networking world.â€
MySpace could certainly benefit from a fast growing social network like MocoSpace, and with Facebook’s continued dedication to mobile in 2011, this could be a match made in heaven.
I know that News Corp is look to shed MySpace, but they did buy it for $500 million in 2005. MocoSpace has only raised $10 million in funding, and I doubt has a couple hundred million in the bank, but we will see. This could be more of a strategic buyout partnership if anything. Stay tuned for more.
Should MocoSpace buy MySpace? Let us know your thoughts in the comments!
