One upside of the Web 2.0 shakeout: As companies with great ideas or innovative tech start to run out of money, they can be gobbled up cheap. That’s what MySpace (NWS) CEO Chris DeWolfe told a Reuters conference closed to outside reporters:
DeWolfe said companies worth between $200 million and $300 million just six months ago are now running out of money and willing to sell themselves for less than one-tenth of that value.
But he’s not ready to buy just yet — we still haven’t hit bottom.
“At the lower levels the money dries up, everyone’s looking for some kind of exit and the valuations we’re seeing out there are definitely a small, small fraction of what they were even five or six months ago,” he said, adding that he expects these companies to become even cheaper in the next few months.
DeWolfe said he considers acquisitions central to MySpace’s overall strategy of looking for growth overseas, in music, and on mobile phones. One company DeWolfe doesn’t want tor MySpace: Twitter, which recently flirted with Facebook. Twitter duplicates MySpace functionality without helping the company grow, he said. (Really?)
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