MySpace Falls Short Of $900 Million Google Deal
In August 2008 Google filed a report with the SEC that their $900 million investment in MySpace “may be impaired.” MySpace made the Google search engine the default for the search engine. Last week, MySpace executives Rupert Murdoch, Chase Carey, and Dave Devoe reported that MySpace fell short of traffic targets.
This means that MySpace will not be paid the full amount by Google. It is likely that MySpace will lose $100 million of the deal, making it an $800 million deal. The loss might be even greater than $100 million. It could even be $300 million according to one of the executives.
MySpace isn’t the only deal to go slightly sour by Google in recent times. Google sold back 5% of their ownership in AOL back to Time Warner. Google bought the 5% of equity for $1 billion and sold it back for $283 million.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry