
MySpace to Make $800 million+ in FY2008 - horatio05
http://mashable.com/2007/08/08/myspace-revenues/
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parker
Now that MySpace is owned by MegaCorp, it feels like it has assumed the role
of 'cash cow' in their product matrix. Not much innovation has come out of MS
in awhile (some would argue ever). I may be a disaffected Gen-Y'er, but cmon
now, it's fairly boring! Rupert will just squeeze it until every drop is
coaxed out, and the only active users out of 20 Billion (or thereabouts) are
Ronald McDonald and Cher.

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electric
This is rather interesting: $10 million on revenue of $550.

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run4yourlives
It's the more important number that everyone seems to be quickly glancing
over.

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staunch
Seems kind of lame to change your argument to be about profit because you were
wrong about revenue...

What if MySpace is just reinvesting a lot right now. Or they're an incompetent
non-technology company that doesn't know how to run things efficiently.
There's no reason they couldn't be making a lot more profit. That's probably
just not the main goal this early, although maybe it should be given the rise
of Facebook.

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run4yourlives
My original argument was neither based on revenue nor profit, but stability. I
used revenue to illustrate because I didn't know the profit margin.

If anything, the fact that mySpace is only profitable to the tune of 1.8%
strengthens my argument. Sure, they may still be in a heavy investment phase,
but I honestly expected a higher margin than that.

>There's no reason they couldn't be making a lot more profit.

No kidding, but if you and I think that, why aren't they?

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staunch
MySpace's profit margin doesn't strengthen your argument at all and these
revenues numbers hurt it significantly. These sites have huge value for the
owners and that's backed up by very real numbers now.

> ...why aren't they?

Likely MySpace is much more interested in strengthening their position through
reinvestment than trying to extract profits this early in the game. That's
responsible and good business, even if they fail at it. Why does this surprise
you?

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run4yourlives
The only numbers that are real is the $550M revenue for last year, and the
$10M profit. The $800M _forecast_ is exactly that, a guess.

Murdoch paid slightly over a year's revenues for mySpace. That's not a bad
deal (actually it's pretty sweet if you think there is a long term chance of
success), but that thin profit margin is really worrying.

What's more worrying is that mySpace was _sold_ by people who thought that
yearly revenue + $10M was a good deal. When even your basic deal starts at 3x
yearly revenue, one wonders why they sold so low.

If mySpace is investing to the point of razor thin profit margins now, they
must either really have something up their sleeves, or are not as healthy as
thought.

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staunch
People who know me know I'm usually the skeptical one about the long-term
value of Facebook and MySpace. You have me beat by a long shot though ;-)

With the humor of Will Ferrel in Anchorman let's "Agree to disagree."

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run4yourlives
lol, sure.

Did you see this today on TC though... check out Woody's comment, #25.
Interesting given the topic at hand, don't ya think?

Link: [http://www.techcrunch.com/2007/08/09/wow-clown-co-got-
that-1...](http://www.techcrunch.com/2007/08/09/wow-clown-co-got-
that-1-billion-valuation-still-nameless-though/)

