MySpace has been on a downward spiral for a while now. From being one of the primary players in the realms of social media, it has floundered and nearly hit the rock bottom. However, Interactive Media, the company that currently owns MySpace, is planning to relaunch it with a rather unrealistic optimism.
This much has been revealed by certain documents from Interactive Media. The documents not only reveal the company’s future plans towards MySpace but also unveil some shocking facts. For instance, they reveal that MySpace was bought for a whopping $580 million by News Corp six years ago. And only last year, it was resold for a mere $35 million.
The revenues of MySpace have seen further decline in recent days. Although it has seen a slight raise in its overall traffic, it couldn’t generate more than $15 million this year. And thus, Interactive Media is again on the run for much-needed funds for this big, giant, white whale.
The company is now seeking funds to the tune of $50 million. With these new funds, the company plans to relaunch MySpace as a competitor to the likes of Spotify and Pandora. Interactive Media says that by rebranding MySpace, it plans to turn it into a music subscription business for mobile.
However, all these plans regarding the future of MySpace are but figments in thin air for now. Interactive Media first needs to generate the much-required funds and even after it has them, it will need to put in extra effort not to make something out of a web-business that is fast becoming worthless.
Source: Business Insider