MySpace was founded in 2003. In July 2005 it was acquired by News Corporation for $580 million. For about 3 years Myspace was the most visited social networking site in the world. It surpassed Google as the most visited site in America in June 2006. That’s when the decline began. By the end of last year, 2011, the site ranked about 138th in most visited (that’s still impressive, but not as impressive).
On June 29, 2011, Myspace was sold to Justin Timberlake and Specific Media for approximately $35 million…a mere 6.03% of what News Corporation had paid some six years earlier. In terms of sheer purchase price, MySpace had managed to lose a value of $545 million. That’s about a $91 million a year decline in value over 6 consecutive years.
All those resources lost. Oh, and in a 2 year period, between June 2009 and June 2011, MySpace jettisoned 1400 people. More lost resources. New Corporation likely would love a “do-over.” $545 million, 6 years, and who knows what else – gone! Suddenly, I feel better about my $50,900 loss.
Every quarter there are tremendous losses and wasted resources. We read about them constantly in the business press. Even the mainstream press.
Well, we don’t have millions of dollars. We’re not Justin Timberlake. How does any of this apply to our life?
Click play and find out. It’s a sober message that everybody needs to more seriously consider. Life is short. Resources are limited. We all need to allocate more wisely.
The Freakonomics podcast is mentioned in today’s show. In particular, this episode about doctors washing their hands and people learning the basics of financial responsibility.