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
50 years of the Ford Mustang Take a drive down memory lane with our favorite photos of the car through the years. More
8 CEOs who took a pay cut in 2013 Median CEO pay inched up 9% in 2013 to $13.9 million. But not everyone got a bump last year. Here are eight CEOs who missed out. More
10 best convertibles now that spring has sprung It's finally time to put the top down. Here are our 10 favorite rides for the warmer months to come. More
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. 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.