Myspace Worth Over $12 Billion?
According to the Times of London, Myspace has been in talks with Yahoo! to discuss a swap of Myspace for a 25 percent stake in Yahoo! This is impeccable timing given Facebook’s recent platform release. If this is true, this would value Myspace at just over $12 billion. Is this swap likely to occur? Probably not. Yahoo! should save its money and go for a much cheaper Facebook.
Honestly, I am surprised that Myspace thinks they have such a high value. My guess is that this is more of a negotiating tactic than anything else. Even if Myspace exited at a $6 billion it would still be one hell of a return on their $570 million investment. This is a good sign that Myspace doesn’t have the development capacity to adapt and make a comparable platform to Facebook. Sucks for them! Anyone that decides to buy Myspace is not going to get much growth on their investment unless they can buy at a significant discount. This is a sign of a slow shift in the social network superpowers.