MySpace, the social networking Web site, could be worth around $15 billion within three years, measured in terms of the value created for shareholders of parent company News Corp., a Wall Street media analyst forecast on Wednesday.
RBC Capital analyst Jordan Rohan said he had come away from a meeting with Fox Interactive, the managers of MySpace, believing that "media investors may not fully appreciate what has already been done with MySpace or what may lie ahead."
"$15 billion in a few years? It is possible," Rohan wrote in a research note to clients.
MySpace was acquired by Rupert Murdoch's News Corp. for $580 million less than a year ago. It now boasts more than 90 million active users.
Rohan said MySpace could demonstrate a value of between $10 billion and $20 billion within a few years. Acknowledging he was making an "audacious claim" he justified the forecast on the basis of MySpace's "raw, unprecedented user/usage growth."
He also said the site's "massive" international appeal, capacity to become "an intellectual property distribution powerhouse" and experienced management team lent credibility to his prediction.
Rohan based his view on an extrapolation of estimates for the value of Internet properties ranging from $1 billion for both MySpace rivals YouTube and Facebook to the market capitalization of $120 billion for Google Inc..
He said MySpace was currently sold out of space for video advertising. The CPM, or price per thousand ad views, on a premium show such as Fox's The Simpsons runs as high as $35-40 on MySpace, he said.
MySpace management believes its video service ranks No. 3 among U.S. Web users behind Yahoo Inc. (Nasdaq:YHOO - news) and YouTube, Rohan said following the Tuesday meeting with Fox officials.
Britain is adding 25,000 MySpace member profiles per day. Australia has 2 million unique users. MySpace France began public testing three weeks ago, he noted.
MySpace is internally developing a MySpace Web application to run on mobile phones that should be launched in three to four months with a major U.S. carrier, he said.
luke posted on Sep 28, 2006
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Comments
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thenack said on Sep 28, 2006....
Yup its pretty amazing, pitty you can't put adsense on your myspace, or can you?
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CyberdyneMedia said on Mar 22, 2007....
Here is the question. do we all invest into News Corp.? to keep them happy and some of us fat?, or do we say fuck Murdoch and News Corp? I think the latter is the better option. In the near future Fox News Channel will not derive their news stories through traditional means, as they presume to do now; it will be done through myspace and the rich demographic database it has given to them over the years.As a matter of course, the following sequence of events will take place-too many peoples identities will be compromised (yes-it is mostly the individuals faults, for posting such personal details), which will lead to complaints for myspace to install a sensible security scheme on its servers-which is evidently missing now. Next, News Corp will disavow any responsibility for any breach of it's database (think-choicepoint), while FNC screams at us about the dangers posed from those in the next cubicle. After that Myspace will devolve into a full blown data mine for all thieves to troll through (remember, even "private" networks are not safe) because it would not be in News Corp's interests to keep it safe-just profitable. In the online marketplace-myspace will grow to wal-mart proportions and insidiously collect all of our data, so it can find a way to market us to death while also placing our own secutiry at risk-don't think for a minute that the shareholders would object to such a plan.We all have been warned and need to take action to protect ourselves. -
CyberdyneMedia said on Mar 22, 2007....
Here is the question. do we all invest into News Corp.? to keep them happy and some of us fat?, or do we say fuck Murdoch and News Corp? I think the latter is the better option. In the near future Fox News Channel will not derive their news stories through traditional means, as they presume to do now; it will be done through myspace and the rich demographic database it has given to them over the years. As a matter of course, the following sequence of events will take place-too many peoples identities will be compromised (yes-it is mostly the individuals faults, for posting such personal details), which will lead to complaints for myspace to install a sensible security scheme on its servers-which is evidently missing now. Next, News Corp will disavow any responsibility for any breach of it's database (think-choicepoint), while FNC screams at us about the dangers posed from those in the next cubicle. After that Myspace will devolve into a full blown data mine for all thieves to troll through (remember, even "private" networks are not safe) because it would not be in News Corp's interests to keep it safe-just profitable.
In the online marketplace-myspace will grow to wal-mart proportions and insidiously collect all of our data, so it can find a way to market us to death while also placing our own secutiry at risk-don't think for a minute that the shareholders would object to such a plan.
We all have been warned and need to take action to protect ourselves
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The most important myspace profile of all time has vanished, peoples.... read entire post