Overview

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Status
Acquired by on June 29, 2011
Total Equity Funding
$37.79M in 1 Round from 2 Investors
Headquarters:
Beverly Hills, CA
Description:
MySpace is a social networking site that enables members to make friends, write blog posts, add music, and customize their MySpace pages.
Founders:
, , , , , ,
Categories:
Social Media, Web Hosting, Social Network, Analytics, Music
Website:
http://myspace.com
Social:

Company Details

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Founded:
August 1, 2003
Employees:
251 - 500 | 35 in Crunchbase

MySpace is one of the world's largest social networks, with about 125 million users. Originally inspired by Friendster, MySpace quickly grew to become the world's largest social network, before being overtaken by Facebook. User pages are highly customizable and support integration with widgets such as Slide or YouTube. MySpace provides users with a way to connect around content and culture.

MySpace was started as a side project of the internet marketing company eUniverse (now called Intermix Media) in August 2003. Brad Greenspan, then founder and CEO of eUniverse oversaw the project, which was also led by Chris DeWolfe (later CEO), Josh Berman, and Tom Anderson (soon to be President). It officially launched in January 2004.

By February 2004, MySpace reached 1 million registered users. By November 2004, that number had reached 5 million. In July, 2005 News Corporation bought eUniverse (renaming it Intermix Media) for $580 M, of which approximately $327 M was the valuation of MySpace. At this time, the site had 20 million registered users. In mid 2007, News Corporation contemplated selling 25% of MySpace stock to Yahoo! in a deal that would have valued the site at $12 B, though this never went through.

After being acquired, MySpace's revenues grew rapidly, as News Corporation pursued lucrative advertising deals. In August 2006, Google made a $900 M agreement to provide search and advertising directly on the MySpace site, which is set to expire in June 2010.

In mid 2008, MySpace participated in a major site redesign. Throughout its history, critics have often cited the chaotic and disorganized interface as a severe drawback to usability of the site. This redesign made the main page more streamlined and clean.

In late 2006, Universal Music Group sued MySpace for millions in damages from copyright infringement. This suit was settled in mid 2008 by the launch of MySpace Music, a site where users can listen to streaming songs from all sorts of artists. To supplement this venture, MySpace acquired iLike in mid 2009. MySpace had previously also launched a record label in 2005 and musicians such as Lily Allen and Sean Kingston were first discovered through MySpace.

In mid 2007, MySpace acquired PhotoBucket for $250 M in cash, plus an additional $50 M earn-out. By late 2009, News Corporation sold a 2/3 stake in Photobucket to a group of investors valuing the company at $60 M, over 80% less than the acquisition price.

Since 2008, user growth has stagnated and page views and other metrics have fallen. In April 2009, longtime CEO and co-founder Chris DeWolfe was replaced by Owen Van Natta, in a publicized firing. President and head of product, Tom Anderson, was kept on, but in a different position. Two months following this, MySpace announced it was laying off 30% of its workforce amounting to 420 people.

In June 2011, Myspace was acquired by Specific Media for a reported US$35 million. Justin Timberlake also took ownership in this acquisition and will play a strong role in Myspace's future strategy and creative direction.

Funding Rounds (1) - $37.79M

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DateAmount / RoundValuationLead InvestorInvestors
Mar, 2005$37.79M / Series A2

Investors (2)

InvestorRound(s)Partner(s)
Series A-
Series A (Lead)-

Acquisitions (4)

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DateAcquiredAmount
Jul 15, 2010Unknown
Jan 13, 2010Unknown
Nov 18, 2009$1M in Cash
Aug 17, 2009$20M (terms undisclosed)

Current Team (35)

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Products (10)

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Competitors (23)

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  • AOL is a global digital media and technology company with four focuses: video, mobile, ad technology and platforms, and open ecosystems.
  • Bebo is a social networking website.
  • CarDomain Networks is a database tracking the behavior and purchasing patterns of automotive enthusiasts.
  • College Tonight is a social media company that develops and operates various properties focused on the college demographic.
  • Cyworld is a virtual community that features content on food, entertainment, technology, and more.
  • Facebook is an online social networking service that enables its users to connect with friends and family as well as make new connections.
  • Friendster is a social gaming site focused on providing users with entertainment and fun.
  • Google is a multinational corporation that is specialized in internet-related services and products.

Offices/Locations (1)

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  • Office

    8391 Beverly Blvd.

    #349

    Beverly Hills, CA 90048

    USA

Past Team (159)

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Images (6)

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