Get it while its hot
It’s been reported that Yahoo wants a piece of the online social networks and has shown interest in both Bebo and Facebook.
If purchased the move would follow the trend of large media corporations buying out these different social networking sites.
Most notably, Rupert Murdoch’s News Corp bought MySpace back in 2005 for £330 million.
Shamsa Rana, the founder of the new media firm Imada said: “There’s been a lot of question of how much MySpace has changed after Rupert bought it.
“Most acquisitions tend to fail on the whole by 67% because you start ‘widdling around with the business model, but I don’t think Rupert is doing anything wrong with MySpace. He’s a very intelligent fellow who understands that he’s not going to mess up what he bought.”
Some people feel that corporate ownership might chase off the young users who dominate this market.
Business director for private equity group Terra Firma Michael Hedegaard said: “It’s a very risky strategy because it’s such an unknown but you have to take those risks. I think some people have left MySpace because they some how felt it being corporately owned is wrong.”
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