Ars Technica’s Anders Bylund does some guesstimating about the total losses incurred by Newscorp in their purchase of MySpace, coming up with a figure of at least $1B, including operating losses since the acquisition.
So all things considered, MySpace has cost Murdoch’s empire something like $1.3 billion. Even if my assumptions are way off, the final cost can’t be less than $1 billion. That fiasco isn’t putting Murdoch out of business: News Corp turned a $2.9 billion dollar profit in the last four quarters and generated $2.2 billion in free cash flow, for example. But it still stings as Murdoch’s dreams of an end-to-end interactive media empire falls apart. And his shareholders have been trailing the broader market as well as rivals Viacom and Disney over those five painful years.
Doing the math on News Corp.’s disastrous MySpace years
