MediaFile

Tencent, De Wolfe among interested buyers for Myspace

April 7, 2011
De Wolfe and Murdoch in happier times (Photo: Reuters)

De Wolfe and Murdoch in happier times (Photo: Reuters)

Chinese Internet holding company Tencent, Myspace founder Chris De Wolfe and Myspace’s current management team are among the 20 odd names kicking the tires at the once might social network to see whether it’s worth buying outright or partnering in some sort of spin-out with current owner News Corp.

Tencent has previously said it is interested in possible US acquisitions.

The names come up in Reuters’ Special Report on ‘How News Corp got lost in Myspace‘,  a behind the scenes tale on how the focused Facebook beat the partying Myspace. (We have the story in a handy PDF format here)

In the story, we highlight some of the key problems Myspace faced,  some well-known and some not often mentioned:

- It was built on a poor technology base which couldn’t keep up with the fast-evolving Web 2.0 environment

- The $900 mln Google search advertising deal put a lot of limits on what executives could do to improve the site

- There was a lot of political  in-fighting between Myspace management and their Fox Interactive overseers

- They struggled in getting the best tech personnel because they were in Los Angeles rather than Silicon Valley

AllThingsD reported earlier that the sales process kicked off in earnest yesterday and News Corp has already had some conversations with the owners of Vevo, the online music video joint venture from Universal Music, Sony Music and the Abu Dhabi Group.

*A couple of points to clarify from our special report. Jason Hirschhorn’s job title, when he was brought on by Rupert Murdoch and Owen Van Natta, was chief product officer and strategy was a part of his role rather than his main role. Also Hirschhorn, who along with Nick Lehman ‘discovered’ Myspace for MTV, was not a negotiator for the parent company Viacom in its bid to buy Myspace.

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Open Letter To News Corp:

Dear Rupert, Chase, and Jonathan,

Bet you never thought your mistakes, as well as your practice of lying to people, would ever become public did you?

We will assume it is hard to dispute the facts when there are correspondences and audio recordings of all communications that support any representations as it relates to the conduct and activities by, and/or on behalf of News Corp, MySpace, and its representatives.

If Chase, Jonathan, or Rupert would personally, and on behalf of News Corp and MySpace, provide authorization and permission to release all correspondences and recorded telephone conversations related to this matter. We would be willing to accommodate that request by providing to several media outlets, including Fox News, all related materials so that a “fair and balanced” determination could be made as to how News Corp does business.

This shall also allow outside individuals, parties, media and the public to determine how badly Carey and Miller, through their activities and conduct, destroyed MySpace and drove it from a success to a complete failure.

As a result of their unwillingness to further discuss and initiate a process that would have generated the stated revenues and results as referenced due to their egos and the greed obstructing their ability to apply common sense to this matter, and to utilize their brains. They have effectively destroyed MySpace and drove its value down more than any other reasons for the decline and eventual failures of MySpace.

We shall see if Carey, Miller, or Murdoch are willing to let the public in on the truth, and provide authorization so that the referenced material may be released, as well as all related documentation in support of these same representations as have been made and as they relate to this matter.

Here are the facts; Carey and Miller were provided the opportunity to change the direction of MySpace last year with a proposal that would increase the net profits of MySpace to 1.5 billion dollars by the third year.

Based on our experience with News Corp, Carey, and Miller no one should trust any of them.

They requested that we disclose the plan to them without any written agreement in place. When that was refused there were no further discussions. And for the record New Corp has a documented history of being given ideas and concepts, and then incorporated those same ideas or concepts. They later claim that they already had been developing those ideas or concepts, and effectively cut out the party or parties providing them with any such ideas or concepts.

This knowledge not only comes from similar occurrences experienced by other individuals. But this was also learned from previous experiences in prior dealings with News Corp and/or their affiliates. You should not trust News Corp and demand that a written agreement be in place, accompanied with detailed documentation of all transactions, and well maintained records of any business dealings you may have with News Corp, their representatives, and/or affiliates.

I would venture to guess that any entity they claim to be offering more than 10 million dollars for MySpace would be another misrepresentation when considering the current state and condition of MySpace.

It is believed that the damage that Carey and Miller have inflected to MySpace has brought its value down to nothing.

Anyone that would be willing to pay the 50 to 250 million dollars to purchase MySpace, as News Corp alleges, would probably mean one of two things. Either they lied to MySpace about what they were willing to pay.

Or a more likely scenario would be that News Corp, Murdock, Carey, and Miller are making gross misrepresentations in an effort to drive the sale price of MySpace up.

TIME WILL TELL!!!

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