A great article in FT.com (Financial Times) about what happened to MySpace after Rupert Murdoch acquired it and did his all to milk it for every penny of advertising revenue. The piece is called "The Rise and Fall of MySpace," by Matthew Garrahan. It can be found here. http://www.ft.com/cms/s/2/fd9ffd9c-dee5-11de-adff-00144feab49a.html
An excerpt from FT.com:
"The Rise and Fall of MySpace," by Matthew Garrahan.
"To say MySpace was a hot property back in 2005 is something of an understatement. Its rapidly expanding tribe of users had attracted the attention of other potential buyers. Viacom, for one, a rival media conglomerate that owns companies such as Paramount Pictures and Comedy Central, was eyeing it as a vehicle to revive its flagging MTV channel, a similarly youth-oriented brand.
But Murdoch got there first and the resulting $580m deal transformed his image at a stroke. The curmudgeonly media baron, whose achievements included breaking the Fleet Street printing unions and launching the conservative Fox News cable channel, had re-invented himself as a 21st-century internet hipster. It took Wall Street a few months to appreciate the magnitude of the deal but the purchase slowly began to imbue News Corp with an almost priceless commodity it had lacked: cool.
. . . .But by the beginning of 2008, things began to sour. Facebook, a rival social network that was simpler and easier to use, was gaining momentum and starting to grow more quickly than MySpace. Murdoch confidently told the world that MySpace would make $1bn in advertising revenues in 2008 – but the company missed its target. Users began to desert the site, which had become cluttered with unappealing ads for teeth straightening and weight-loss products. News Corp executives could hardly hide their displeasure, and in April this year, DeWolfe left, closely followed by most of his senior management team. . . . '"
Read the rest of it here: http://www.ft.com/cms/s/2/fd9ffd9c-dee5-11de-adff-00144feab49a.html