This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
Digital
News Corp paints rosy picture in MySpace pitch document
By CMU Editorial | Published on Thursday 14 April 2011
Tech sites have been remarking on the pitch document put out by News Corp to companies interested in buying MySpace, which has been seen by sites like TechCrunch.
Most of the comment is on the fact the document apparently talks an awful lot about projected future revenues, and not at all about MySpace’s recent and rather significant slumps in user numbers and ad revenues, a slump which continues unabated in the latest comScore stats, and which many commentators reckon is likely to continue for the foreseeable future.
The document admits that MySpace will lose over $165 million in this financial year, but reckons that could be turned into a $15 million profit in the next year, mainly by incredibly ambitious cost cutting. The document goes on to predict $100 million+ profits in future years.
Presumably those interested in bidding for MySpace have their own agenda for the data and technology an acquisition would deliver, and don’t therefore really care about whether the current business model has any chance of becoming profitable again. But any currently deluded bidders would hopefully have the common sense to ask, if this company is going to be that profitable that soon, why are News Corp so keen to offload it?
