MySpace Worth Anywhere From $0 to $20 Billion

Posted on October 2, 2006

Mark Glaser has written a funny spoof of the recent Reuters story that suggested MySpace could be worth as much as $15 billion. The Reuters story cited RBC Capital analyst Jordan Rohan who said "MySpace could demonstrate a value of between $10 billion and $20 billion within a few years." Glaser's spoof story (from the Goiters news agency) cites his own research and says it is possible that MySpace could be worth absolutely nothing within three years.

MySpace, the social networking Web site, could be worth around $0 within three years, measured in terms of the value created for shareholders of parent company News Corp., according to a media analyst forecast on Wednesday.
PBS MediaShift analyst Mark Glaser said he had come away from a meeting with various disgruntled teenagers who had given up MySpace accounts, believing that "media investors may not fully appreciate what has already been done with MySpace or what may lie ahead when everyone leaves MySpace for different, more hip social networking sites."
"Worth absolutely zero dollars in a few years? It is possible," Glaser wrote in a research note to himself.
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, though it's unclear what they all are actively doing there.

Somewhere in between $0 and $20 billion is likely to be the correct final answer but will it be closer to zero or closer to $20 billion? You can leave your answer here on Glaser's comment page. We see a $0 left in the comments there already by Max Kalehoff.