Did you know: MySpace turned down a $75 million offer to buy Facebook
posted by Victor H. / Dec 11, 2015, 9:52 AM
Facebook is one of the biggest companies in the world right now with a market value of the amazing $300 billion and more than 1 billion users signing in every day.
Yet back in 2004, in the early days of the company, it was looking for ways to attract capital and was turned down not once, but twice by MySpace. Then, MySpace CEO Chris DeWolfe met with Facebook founder Mark Zuckerberg and the two talked about a merger. Zuckerberg's offer was for MySpace to buy Facebook for... just $75 million. It would seem outrageous by today's measures, but the answer then was 'no'.
MySpace CEO said 'no' and then 'no', againMore than a year after that talk, in the fall of 2005, after News Corp paid $580 million for MySpace, the two executives met again and by this time Mark Zuckerberg came up with a different price tag: $750 million. The answer by DeWolfe: 'no', again.
Facebook skyrocketed in the following years. In the fall of 2007, Microsoft bought 1.6% of Facebook for $240 million, which determined the total valuation of Facebook at the whopping $15 billion.
A few years later, analytics firms confirmed that Facebook draws twice as much traffic as MySpace and the former social giant was quickly losing relevance. Fast forward to today and MySpace exists only for the sake of jokes, while Facebook has become an inseparable part of most people's daily lives. And MySpace CEO Chris DeWolfe probably laments his decisions... at least we would, if we were him.
Posts: 114; Member since: May 04, 2015
I mean saying no the first time because they didn't think facebook was worth that much. But 2nd time 750mil?? Come on... If they were able to x100 their value in 2 years. this should've been obvious. Now they are value at 300bil? that is a x400 from 750mil. Playing to safe man...
posted on Dec 11, 2015, 10:03 AM 2
They 10x-ed their value in 2 years :o!
posted on Dec 11, 2015, 10:48 AM 3
Posts: 1158; Member since: May 27, 2012
They are loosers . If they acquired Facebook that time, it would have been another failed company. Microsoft acquired the second largest phone manufacturer with a legend and very reliable brand. What happened now??. Killed Nokia name, killed featured phones, killed Android phones, killed the great Nokia design, fired all awesome engineers and rest of staff, killed Nokia music and the rest of apps, killed the McLaren project, and so on. The most important factor for a successful business is the professional management. Myspace didn't have this, just like Microsoft management for the handset division.
posted on Dec 11, 2015, 10:05 AM 29
Posts: 390; Member since: Oct 13, 2015
Agree 100%. Don't also forget that Microsoft was running Nokia by its trojan horse Elop since 2011, when Nokia was world's largest smartphones producer company. Elop called Symbian and MeeGo the burning platform and phased out Ovi store the time it had 180K apps (Appstore had 200K apps). Nokia had the worst luck in our history.
posted on Dec 11, 2015, 10:41 AM 3
Posts: 1108; Member since: Mar 17, 2015
Nokia was failing in the market long before Microsoft acquired it.
posted on Dec 11, 2015, 11:02 AM 8
Posts: 399; Member since: Sep 29, 2015
That is wrong. Nokia was dying and nothing Microsoft could have did to bring them back. I'm guessing you are still using a Symbian phone probably not, if anything Microsoft gave a dying horse so extra water to live. Mclaren didn't only had a 20megapixel camera.
posted on Dec 11, 2015, 12:20 PM 2
Posts: 14967; Member since: Sep 25, 2013
Microsoft didn't cause the demise of Nokia. Nokia started the process of dying by not adopting Symbian fast enough to compete with Android, and when they saw they had their backs on the wall, refused to adopt Android and just moved with the times. Microsoft basically offered a bailout plan to simply destroy what was left because Nokia would have been Microsoft's only block to market after being late. Blackberry was already falling apart an since they couldn't do a deal with RIM, Nokia was simply the next logical choice. But you can't blame Microsoft for Nokia's demise. I am not saying they didnt have a hand in it. I'm just saying only 25% of it is Microsoft's fault. An before I get famed, 25% was just an arbitrary number. The fact is it even less than that to being Microsoft's fault.
posted on Dec 11, 2015, 2:04 PM 5
Posts: 5192; Member since: Oct 28, 2013
Holy crap I agree with you for once?! Yes there is a site (saved the link somewhere) which shows the demise of Nokia well before Elop even arrived. Hell they even were going to go with Android even before signing with MS but knew they didn't have the cash or position to compete with Samsung...and low and behold they were right. They would have went the way of Moto, sold off to Google, stripped of ALL patents and workforce then sold off...just like Google Did.
posted on Dec 12, 2015, 7:10 AM 0
Posts: 191; Member since: Mar 13, 2015
I wouldn't be too concerned about Chris DeWolfe. I'm pretty sure he can still put food on the table. Hindsight is 20/20. I'm guessing when they were having these meetings, they had no idea how much Facebook was going to skyrocket. Anyway, I'm not going to lose any sleep over companies choosing to not buy other companies. It is an interesting note of history though.
posted on Dec 11, 2015, 10:54 AM 1
Posts: 14967; Member since: Sep 25, 2013
Because at that time MySpace was the talk of the town and was the top dog. He didn't see his new competitor as a worthy challenge or a market worth buying because he expect Myspace to forever be top dog. But not buying Facebook really wasn't their mistake. Their mistake was, once Facebook really started taking off, MySpace did nothing to try to compete on the same level so people wouldnt leave. The webpage was funky, it was slow, the content was boring; even though you could do much of the same stuff. But the layout was disorganized and it was simply boring. Facebook brought a new fresh approach to the same thing and MySpace was simply left behind. Also, having Zuckerberg for a partner who is a known thief who stole the concept of Facebook from the Twins, maybe the guy was scared to do business with him. I mean Zuckerberg was a very shady character then and he is now. Facebook is made up of a bunch of stolen ideas. Stuff he stole from people who worked with him. Zuckerberg was like Jobs. he had the ability to take an idea some had and turn it into money. But at the same time, the person idea whom it was got screwed. I mean Steve Wozniak isnt hurting, but he left Apple because of Steve. A company who it's HIS invention that made Apple even possible. I would have said no too
posted on Dec 11, 2015, 2:00 PM 3
Posts: 14967; Member since: Sep 25, 2013
Looking back, I think all of us here could list missed opportunities of big companies. Xerox blew their chance to be the largest producer of Personal Computers. HP also miss thsi change when Steve Wozniak present something as simple as the Mouse. Apple missed a golden opportunity when they could have been running the best OS on their hardware with Office and everything else. RIM, Microsoft, Intel, ATI, AMD, 3COM and others have all blew chances to be at a certain point in history. If Microsoft had jumped on the mobile bandwagon in 2007/8 they woudlnt be in last pleace hanging on by a thread. if Google didnt waste a year negotiating with the guys who made Android and had a working device similar to the iPhone in 2007, iOS could potentially have even less marketshare. Even some of us on a personal level probably blew some opportunities. Liek me. I was offered a chance to purchase stock into Dell with the company I was doing work for at the time. I didnt have the cash, But I had a car I could have sold and still kept and just paid the money back as collateral and I could have had $20K to put into Dell stock. I BLEW IT! I look back I could have been rich when Micheal decided to buy it all back. I could be a multi-millionaire now. When companies have humble beginnings, it is hard to judge what success they will have, especially in a market where there are already very successful options. The guy may regret he didnt make a move, he may not. The only difference is, it would simply be richer than he is now. He already has far more money than a thousand of us will have combined. He can still sleep good at night.
posted on Dec 11, 2015, 2:14 PM 0
Posts: 6023; Member since: Dec 30, 2010
Wow talk about a seriously stupid move... Back then Facebook was so basic....it wouldnt have hurt to buy it. Good riddance to MySpace tho.... It was good for what it was...but the layout and performance sucked big time.
posted on Dec 12, 2015, 11:01 PM 0
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