Myspace to be Sold for $35M
The sell of Myspace by News Corp for $35M after buying the company for $580M around 6 years ago should signal to investors to tread carefully with the current hype with social media companies. Even going back to Yahoo (YHOO) and how ten years ago it was the hot internet property. In a way, these companies have an initial spurt of business when they become cool with the early adopters or younger generation. Unfortunately like in the case of YHOO or Myspace at some point they become outdated or just can't keep up with the cool new features. The four social media companies in the process of IPO'ing in the next year all face significant risks to valuations that seem very obsessive compared to existing companies. Facebook - might not IPO until 2012. Though they are the dominant player in social media they face a significant issue with remaining the focal spot for youth. Youth originally dominated the site, but its recently seen a huge influx of adults. We all know that kids ...