Confidential MySpace Document Projects $165 Million Loss This Year Alone
A confidential official MySpace document projects total revenue for fiscal 2011 ending June 30th to be $109 million. Expenses for the year are projected at $274 million. That means that, even after massive layoffs and cost cutting, MySpace will lose a staggering $165 million in just 12 months.
The document, a MySpace pitch book that News Corp distributed to interested buyers, was obtained by TechCrunch. In the coming year, revenue projections fall to $84 million, but expenses also drop from $274 million to $69 million. MySpace will then be profitable, according to their sales pitch.
Looking forward, the pitch book optimitically predicts revenues in 2013, 2014 and 2015 at $101 million, $119 million and $139 million respectively.
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Expenses drop by almost 400%? That sounds like massive lay offs are in store among many other cuts. Not a good time to be working for MySpace.
I can’t see this whole shift to focusing on video and music as paying off either. YouTube has that market down pretty tight for the social video/music angle.
@ online video service: a drop of expenses by 400% – interesting number you come up with
oh so much loss
Myspace just needs to give it up. They’ve been bombing big time, especially with having to compete with other successful social networking sites ie; facebook/twitter/youtube. I can’t think of one person that I know personally, who actually still uses myspace. Too much spam. They tanked.
I actually went to myspace today to find a local artist. I couldn’t find her. Matter of fact I know I used to be able to search for bands by genre and by location. Now you can only search by names. And when you search by name it will bring up big time bands that don’t even have that name in it.
Good one myspace. Had to make sure it wasn’t still April 1st.