Rupert Modestly Assesses MySpace at $6 Billion

What Everyone Is Talking About

By Published on .

Most Popular
NEW YORK (AdAge.com) -- MySpace is poised to become the biggest single media platform on the planet -- at least that's the opinion put out this week by Credit Suisse First Boston.
News Corp Chairman-CEO Rupert Murdoch suggests that MySpace.com could be worth $6 billion. | ALSO: Comment on this article in the 'Your Opinion' box below.
News Corp Chairman-CEO Rupert Murdoch suggests that MySpace.com could be worth $6 billion. | ALSO: Comment on this article in the 'Your Opinion' box below.

Since News Corp. acquired the property from Intermix Media (yes, remember them?) the number of profiles on the social-networking site has zoomed to 130 million from 29 million in July 2005. Profile pages are growing globally at the pace of 8 million a month and are expected to hit 200 million by the end of 2006. That's a heck of a lot of eyeballs -- and with MySpace launching in Japan and News Corp. eyeing the China market -- there's more to get.

Those guys at Intermix Media must be feeling like chumps right now. They sold MySpace.com to News Corp for $580 million. What's it worth now? (Cue Mike Myers' Dr. Evil) SIX BILLION dollars. That kind of valuation makes YouTube's Chad Hurley look like the Oliver Twist of new media.

So who's behind this bold prediction? Why, the man who bought MySpace, of course: none other than News Corp Chairman-CEO Rupert Murdoch. Speaking this week as part of a Q&A session with Credit Suisse First Boston analyst William Drewry in Sydney, Australia, Mr. Murdoch suggested the company could easily be worth $6 billion.

Watercooler spoke to some other Wall Street analysts who scoffed at that figure but still pegged MySpace's worth in the $3 billion to $4 billion range; not exactly small change and more than enough to keep Sumner Redstone fuming.
In this article: