2 of 6
BACKNEXT
MySpace
MySpace
CEO: Mike Jones

The Rise: Flash back to July 2006, and MySpace was the most-visited Web site in the U.S., raking in 4.5% of all Internet traffic. Even more than Friendster, the social network founded by Chris DeWolfe and Tom Anderson in January 2004 blurred the lines between online social interaction and the real world. And by 2005, the social network had become so righteously hip, even Rupert Murdoch wanted in, so News Corp. scooped up MySpace's parent company Intermix Media for a cool $580 million.

The Fall: If ever there was an under performer, it would be MySpace. Despite a recent (and radical) redesign positioning it as a niche entertainment, it's failed to change its fortunes so far. According to Compete, web site traffic declined more than 27%, from 77 million to 47 million visits during 2010, and News Corp.'s digital division, which includes MySpace, posted a revenue decline for its fiscal second quarter of 29%, while operating loss grew to $156 million from $125 million the same time a year ago. To add insult to injury, 500 employees got pink slips in January.

The Plan: News Corp. has publicly stated that MySpace has performed below expectations. As a result, it has reportedly hired Allen & Co., a media investment banking firm, to explore options like a possible sale.

The Challenge: Though parties like mobile social network MocoSpace are apparently interested in buying the once-social network, the question becomes less whether anyone will buy MySpace, but can its current management do anything to effectively halt its decline and prove its worth what ever devalued amount it ultimately ends fetching.



NEXT: AOL
Last updated February 15 2011: 12:30 PM ET
More Galleries
5 biggest share buybacks of 2014 Stock repurchases are booming. These five companies are ready to spend over $79 billion on buybacks. More
10 horrifying corporate mascots McDonald's Happy is part of a long lineage of creatures great and small that shill for products and mortify consumers. Mr. Mucus, anyone? More
5 best cities to launch a career The top spots in the U.S. for new grads to land a job -- and actually enjoy life -- according to financial site WalletHub. More
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.