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dryrot

Myspace Losing $150M+$: 50% Layoffs And For Sale...

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Hi

News Corp paid $580m for a chunk of MySpace. Lost $150m last year and and now 50% job cuts :(

Only bright side is that Rupert came unstuck... Up for sale but no buyers flocking!

http://www.montrealgazette.com/technology/ongoing+talks+MySpace+sale+source/4057527/story.html

http://www.insideireland.ie/index.cfm/section/news/ext/myspacejobcuts001/category/1095

Still, the founders did OK (like friendsreunited, and bebo(?))

(Linked to the GS pump and dump of Facebook http://www.housepricecrash.co.uk/forum/index.php?showtopic=157059&st=0 . Like the housing bubble, Web 2.0 is not hype; "It's different this time!" :) )

EDIT: $ for £ on the 580million

Edited by dryrot

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Are they struggling to get revenues from the fantasy numbers they said they would generate before selling shares.

Facebook and other social sites will go the same way. The advertising revenue alone is not enough to justify the insane valuations these companies command, they will come under pressure from new start-ups with the next big thing etc, etc http://market-ticker.org/post=176313

It's all down to the greed of the markets looking for a quick pay day/bonus instead of investing in long term R&D cycles that real businesses require. The system is wrong as shares were ment to allow business to raise capital to invest in growth/futures etc now its simply to raise as much cash as possible to pay out the latest bonus/pension shortfall.

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Facebook and other social sites will go the same way. The It's all down to the greed of the markets looking for a quick pay day/bonus instead of investing in long term R&D cycles that real businesses require. The system is wrong as shares were ment to allow business to raise capital to invest in growth/futures etc now its simply to raise as much cash as possible to pay out the latest bonus/pension shortfall.

Heretic! :) Next you'll be suggesting that houses are for living in, rather than as speculative investment vehicles! or that builders build gaffs for families, rather than quickreturn flimsy slaveboxes... (oh it's ll too depressing :) )

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Facebook and other social sites will go the same way. The advertising revenue alone is not enough to justify the insane valuations these companies command, they will come under pressure from new start-ups with the next big thing etc, etc http://market-ticker.org/post=176313

It's all down to the greed of the markets looking for a quick pay day/bonus instead of investing in long term R&D cycles that real businesses require. The system is wrong as shares were ment to allow business to raise capital to invest in growth/futures etc now its simply to raise as much cash as possible to pay out the latest bonus/pension shortfall.

I think you are wrong about Facebook. IMO it is constantly being improved and things such as the 'like' feature tie more and more sites/people into it. I also think that, unlike myspace which was always obviously no more than someone getting lucky with a fortunecity / geospace clone, Facebook is fast becoming a large part of peoples internet usage. And whatever you may think - having people spending the bulk of their time on Facebook is going to bring them revenue. More and more people are buying facebook credits and more and more services on facebook are tying up deals to only accept Facebook credits. Whether you are playing games or buying items/services within facebook you will use their currency. And if you are creating this games/services/stores then you will pay to advertise within Facebook.

Edited to add that i do agree that the valuation seems insane. But if you consider that Facebook might become "the internet" for a large amount of people then who knows?

Edited by majestic whine

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Facebook is here to stay for the foreseeable future, there are a lot of companies investing a lot of money into it. Can it still overstretch? Yes probably. Does it have a viable business plan as opposed to Twitter and Myspace? Yes.

Not saying this as a fan boy.

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isn't Facebook the reason MySpace has died, rather than facebook being the next one on the list?

Friends Reunited anyone?

Edited by bobthe~

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isn't Facebook the reason MySpace has died, rather than facebook being the next one on the list?

Friends Reunited anyone?

I know at least 3 people who have closed their Facebook accounts in the last week, admittedly one of them is me.

Facebook is actually a pain in the **** if you can't be bothered to continuously tweak the security/communication settings. If you don't you just get a vomit drenched spew of useless email telling you that some twit you once knew has bought a frikking farmville pig.

Frankly Facebook is no longer cool and interesting and is only really occupied by the unemployables.

Edited by Mikhail Liebenstein

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I know at least 3 people who have closed their Facebook accounts in the last week, admittedly one of them is me.

Facebook is actually a pain in the **** if you can't be bothered to continuously tweak the security/communication settings. If you don't you just a vomit drenched spew of useless email telling you that some twit you once knew has bought a frikking farmville pig.

Frankly Facebook is no longer cool and interesting and is only really occupied by the unemployables.

What an interesting overview of Facebook.

I have never fully understood quite why it is that people would want to post their news, views, pictures etc on a website available to all and sundry..I do understand that there are various things that can be done to limit access.

I am told that Facebook is a wonderful way of establishing contact with old 'friends'...In my experience 'friends' tend to stay in touch anyhow, and to me Facebook simply negates the whole point of communication.

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What an interesting overview of Facebook.

I have never fully understood quite why it is that people would want to post their news, views, pictures etc on a website available to all and sundry..I do understand that there are various things that can be done to limit access.

I am told that Facebook is a wonderful way of establishing contact with old 'friends'...In my experience 'friends' tend to stay in touch anyhow, and to me Facebook simply negates the whole point of communication.

Time will certainly tell how Facebook and others evolve or die. In the meantime I think a lot of people will make/lose a lot of money on social ventures that rely on their customers to produce all of their content. Happy to be wrong regarding picking specific winners/losers. I think that some of the comments here along with the many posted on facebook when they looked at charging for their service show just how fragile social business models are. The real winners to date have been the broadband providers both fixed and mobile who have evolved their business models and have been saved, at least for the time being, from becoming dumb pipe utility companies. Future winners may be the MBA vendors that will have an endless supply of case studies.

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Hi

News Corp paid $580m for a chunk of MySpace. Lost $150m last year and and now 50% job cuts :(

Only bright side is that Rupert came unstuck... Up for sale but no buyers flocking!

http://www.montrealgazette.com/technology/ongoing+talks+MySpace+sale+source/4057527/story.html

http://www.insideireland.ie/index.cfm/section/news/ext/myspacejobcuts001/category/1095

Still, the founders did OK (like friendsreunited, and bebo(?))

(Linked to the GS pump and dump of Facebook http://www.housepricecrash.co.uk/forum/index.php?showtopic=157059&st=0 . Like the housing bubble, Web 2.0 is not hype; "It's different this time!" :) )

EDIT: $ for £ on the 580million

HAHAHAHAHA. What a laugh.

The internet business is turning out to be a lot like the movie business.

NOBODY KNOWS ANYTHING.

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Facebook and other social sites will go the same way. The advertising revenue alone is not enough to justify the insane valuations these companies command, they will come under pressure from new start-ups with the next big thing etc, etc http://market-ticker.org/post=176313

I'm not so sure about Facebook. I think it has more time to run. I have an account, but don't really use it much, however, it is one of the portals I use for contacting friends and it serves that purpose well but could be replaced with something else. However, I'm not an overly social type so my personal feelings about it probably don't count for much.

On the other hand, my 91 year old great aunt has an account which she uses( :o ), and that is where it differs from other social sites. It seems to be something that the older barely computer literate generation are happy to use and it serves a puropse for them, in this case keeping in contact with a large extended family - posting photos, family updates etc.

The live chat tacked onto a web based photo album and message board is also important. Often you put off ringing friends because of your and their busy lives making it difficult to intersect, but if you see them online on Facebook then you know they are free, and it would be rude not to say hello etc.

There is also something to be said for the social aspect of the games. Games allow people to cooperate and bond; the positive aspect of this shouldn't be discounted. I also don't get spam on the Facebook messages, unlike every e-mail account I have ever had.

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I'm not so sure about Facebook. I think it has more time to run. I have an account, but don't really use it much, however, it is one of the portals I use for contacting friends and it serves that purpose well but could be replaced with something else. However, I'm not an overly social type so my personal feelings about it probably don't count for much.

On the other hand, my 91 year old great aunt has an account which she uses( :o ), and that is where it differs from other social sites. It seems to be something that the older barely computer literate generation are happy to use and it serves a puropse for them, in this case keeping in contact with a large extended family - posting photos, family updates etc.

The live chat tacked onto a web based photo album and message board is also important. Often you put off ringing friends because of your and their busy lives making it difficult to intersect, but if you see them online on Facebook then you know they are free, and it would be rude not to say hello etc.

There is also something to be said for the social aspect of the games. Games allow people to cooperate and bond; the positive aspect of this shouldn't be discounted. I also don't get spam on the Facebook messages, unlike every e-mail account I have ever had.

All valid points, I think that the fundamental questions are how much would you pay to use facebook or other social site? What is it really worth as a company?

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Those who want to fly too high in this business will fall down quickly.

Facebook can only down now. The hopes are just too high.

Nothing can be all the rage all the time.

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Well facebook's massive appeal to advertisers is that its very easy to select your target audience (age, sex, interests, sexual orientation, etc) however, it is a fact that Facebook's ads have very poor click through rates:

http://www.tbiresearch.com/facebook-is-improving-its-self-serve-display-service-for-advertisers-2010-1

On another note, Twitter has only recently introduced any kind of advertising. And lets not forget youtube only got really commercially into advertising when Google took over (introducing ads before videos, and premium services for businesses). And even then, the cost of running a mammoth, bandwidth consuming giant such as youtube would have been largely reduced by Google's vast infrastructure of giant data centres all around the world. Otherwise they would have been looking at enormous hosting costs.

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All valid points, I think that the fundamental questions are how much would you pay to use facebook or other social site? What is it really worth as a company?

Nothing (well, even that isn't true as people are willing to pay real money for games), but the advertisers are willing to pay. Google has monetised itself quite nicely. Even given its penetration, $50 billion may seem like a lot for Facebook, but Google earned over 21 billion from advertising in 2008 (gross - net profits were about 4.2 billion). The click through rate is an issue, but then people thought Google would never be able to monetise search. Anecdotally, Mrs Woods has done some advertising on Facebook, and found it cost effective.

Edited by Tiger Woods?

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I've found Myspace to be handy in discovering small bands...I don't think the bigger bands use it so much any more...now that the myspace fad has gone, they've moved on to pastures new...

http://en.wikipedia.org/wiki/Friends_Reunited

ITV lost a hundred & fifty million, when they sold it on to DC Comics....blimey...In 2007, growth was down to 1.2%, I dread to think what it is now...

To me, Facebook is moving towards the peak of the social networking bubble, but ultimately I think its influence will reduce in time....how much by, I'm not so sure...

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The fact that cash-rich investors have paid silly money in the past for these ventures does not mean that they will fail, rather they may reflect more sober and realistic valuations, particularly as there has been a recession. I am sure that these sites cost a lot less to run than they can raise in advertising revenue.

In the case of Friends Reunited, it grew at one point to be Britain's largest organisation by membership. Strange sort of failure, it is still profitable. The company hasn't lost money, but the naive investors who overpaid for shares have.

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Well facebook's massive appeal to advertisers is that its very easy to select your target audience (age, sex, interests, sexual orientation, etc) however, it is a fact that Facebook's ads have very poor click through rates:

http://www.tbiresear...ertisers-2010-1

On another note, Twitter has only recently introduced any kind of advertising. And lets not forget youtube only got really commercially into advertising when Google took over (introducing ads before videos, and premium services for businesses). And even then, the cost of running a mammoth, bandwidth consuming giant such as youtube would have been largely reduced by Google's vast infrastructure of giant data centres all around the world. Otherwise they would have been looking at enormous hosting costs.

This is the classic thing that people who sell a communications or marketing capability say. Most people I know that use face book usually have a fake account as well, so I reckon at least 50% of facebook members don't actually exist. So in a marketing sense 50% of the budget is wasted which is the time old problem in marketing - its just you don't know which half.

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Well facebook's massive appeal to advertisers is that its very easy to select your target audience (age, sex, interests, sexual orientation, etc) however, it is a fact that Facebook's ads have very poor click through rates:

http://www.tbiresearch.com/facebook-is-improving-its-self-serve-display-service-for-advertisers-2010-1

On another note, Twitter has only recently introduced any kind of advertising. And lets not forget youtube only got really commercially into advertising when Google took over (introducing ads before videos, and premium services for businesses). And even then, the cost of running a mammoth, bandwidth consuming giant such as youtube would have been largely reduced by Google's vast infrastructure of giant data centres all around the world. Otherwise they would have been looking at enormous hosting costs.

Google understands business far far better than facebook. It is very good at promting adverts without making it too blatent. It seems to at least post relevant ads to the search I doing. This is great if I actually am searching for something to buy ( which I do fairly often using google ). It has also successfully moved into the phone market and has no real reliance on PCs as a revenue stream. This means it can try to remove PCs as the main consumer access point to the internet if it so desires ( damaging one of its main competitors Microsoft ). As such Google is well placed, although I no longer believe that it stands by its company motto.

Facebook on the other hand really hasn't got a clue about advertising. I have a few friends ( less than 5% ) that live in Holland, but about half the adverts I get are in Dutch. They don't seem to have a sensible way to link that up. Facebook is simple to use, but annoying to do anything that isn't basic on. I think they stumbled onto some very nice simple stuff and then haven't had many decent ideas since. I suspect it will go the way of myspace, BUT ONLY if something else better comes along. For the next 5 years it will be in its free money phase. If they invest that money/growth unwisely and think they are invincible they'll be in trouble.

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Google understands business far far better than facebook. It is very good at promting adverts without making it too blatent. It seems to at least post relevant ads to the search I doing. This is great if I actually am searching for something to buy ( which I do fairly often using google ). It has also successfully moved into the phone market and has no real reliance on PCs as a revenue stream. This means it can try to remove PCs as the main consumer access point to the internet if it so desires ( damaging one of its main competitors Microsoft ). As such Google is well placed, although I no longer believe that it stands by its company motto.

Facebook on the other hand really hasn't got a clue about advertising. I have a few friends ( less than 5% ) that live in Holland, but about half the adverts I get are in Dutch. They don't seem to have a sensible way to link that up. Facebook is simple to use, but annoying to do anything that isn't basic on. I think they stumbled onto some very nice simple stuff and then haven't had many decent ideas since. I suspect it will go the way of myspace, BUT ONLY if something else better comes along. For the next 5 years it will be in its free money phase. If they invest that money/growth unwisely and think they are invincible they'll be in trouble.

Yeah good points. Interestingly none of the facebook mobile aps contain ads...

But the other theory is that this is all a massive war for our personal data. Google sees Facebook as the biggest threat to this, and their recent spat over the use of google account information is evidence of this. Gmail also has some very good targeted advertising - so if you're reading an email about squirrels, you might get an ad about squirrels.

If falls over on the main inbox page regularly though, as I frequently get ads for "delicious SPAM recipies" :D

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isn't Facebook the reason MySpace has died, rather than facebook being the next one on the list?

Friends Reunited anyone?

Myspace always crashed my computer. And i couldnt stand it how whenever you clicked on anyone the first thing you got was blasted by their sh1t taste in music. It was a bloody shambles.

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  • 312 Brexit, House prices and Summer 2020

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      • down 5% +
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