I may as well list the reasons MySpace went down
1. Intermix Management breached their fiduciary duties to stockholders by failing to initiate an auction process to maximize stockholder value
News Corp.'s buyout terms radically undervalues Intermix at $12.00.
A fairness opinion issued by Intermix' own investment bankers, Thomas Weisel Partners, indicates that Intermix stockholders deserved up to $19.50 per share.
MYSPACE has grown in value significantly since the proposed News Corp. deal was announced, with significant increases in page views, ads shown, and unique viewers. Nielsen Netratings reports an almost doubling of online display advertising for Myspace from 6.3% of all ads in May up to 12.9% of all online advertising impressions delivered online in August.
2. Intermix Management rushed to sell the company to protect themselves from personal liability for their massive insider trading of Intermix stock, and other acts that harmed stockholders.
Intermix was also being sued over spyware that they created and distributed by Elliot Spitzer. Later caught with a cheap hooker by the FBI and discharged of his duties as NYS attorney general.
New York Attorney General Eliot Spitzer filed a lawsuit against Web marketer Intermix Media on Thursday, charging it with being a source of adware and spyware programs that hinder online commerce and security.
When MySpace was sold to NewsCorp it was all over.
MySpace's general population was 75% Californian/Liberal. They hated Rupert and promptly left. Sure they kept their account, but no longer visited the website. They even violently campaigned against it and bought software like PHPFox to make custom social network websites of their own.
One of them running PHPFox called Adultspace actually got 2.3 Million in funding. Running a $199 PHP script on a virtual private server.
You see a large number of the MySpace users were in fact perverts and going to a swinger website was not a huge leap.
The other users were leftists that hated Murdoch, who left to niche websites, and later Facebook.
Then MySpace expanded to the world, and Rupert made his far younger bride, Wendy Deng the head of Myspace China
Of course the Chinese didn't like this and fled to Tencent's QQ social network QZone instead.
MySpace's management, the Tom mascot, and everything they did was all wrong.
Tom lied about his age
and quickly became hated.
The management had no skill what so ever and ran up company expenses while they did next to nothing.
This was a company held up by old media cash that had no redeming value.
When they got in trouble over minors getting stalked they hired Hemanshu (Hemu) Nigam from Microsoft.
He basically made all the profiles private and that helped kill off the website as well as everybody simply turned on the privacy filter and they lost the Google juice from personal information being indexed.
I see MySpace this way, it would be like making Rory Blyth the president of Google.
Yes, they would have a lot of money, but no, they probably wouldn't be doing anything constructive.