If you look back at your financial history and find some embarrassing investments, then here is a nugget for you, which will surely
make you feel good about yourself. In 2005, News Corp bought hot social networking site My Space for cool $580 million. Fast forward six years, the company washed its hands off the site for $35 million. That's $545 million capital loss in six years. Bet, now you are not feeling that foolish for your investment mistakes.
After much struggle, News Corp found a suitor for its terminally ill social networking venture My Space. $35 million may sound paltry, but it is actually a pretty neat deal for News Corp. if we consider the present standing and future prospects of My Space. News Corp. will retain some stake in the company but it would be less than 5 percent.
Myspace is the poster child of fickleness of internet phenomenon, but at the very same time, it is also living example of consequences of poor management. Specific Media stated, "There are many synergies between our companies as we are both focused on enhancing digital media experiences by fueling connections with relevance and interest." Amen, we say!
Only future would tell if Specific Media would be able to pull the feat which News Corp. could not. During the past six years, News Corp tried to re-invent and redesign the social networking site, but all its attempts miserably failed. News Corp. had expressed its intentions of getting rid of the ailing venture early this year and since then it had been busy vetting various suitors.