Are social media sites another ‘dot.com’ bubble? Myspace ‘for sale’ as millions leave in weeks


BBC News: following events reminiscent of the late 90s dot.com bubble, Myspace seems to be in trouble as millions of its members have left it in a matter of weeks despite improvements to the once hugely popular social media site.

Analysts say that 10 million of the site’s members departed the site between January and February of this year leaving it with around 63 million users.  In February 2010, Myspace had more than 110 million users. Myspace is reputedly blaming the popularity of Facebook and similar sites for its decline.

Myspace had assisted in the springboarding of the careers of several popular artists including Arctic Monkeys, Kate Nash and Lily Allen. But sadly things seem to be going from bad to worse for it and it has recently announced that it is shedding 500 of its employees worldwide

In 2005, News Corp had bought the company for £330 million, but now analysts are saying News Corp will be lucky to get more than £50 million from a buyer.  The company is reported to be actively looking for a buyer.

Could this be the start of the social media ‘dot.com’ bubble?  Investors are watching developments with interest.

[Tim Jenks, Social Media Contributor]

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