Myspace was poised to dominate the world. Then, suddenly, it wasn’t.
Felix Gillette‘s cover story in Bloomberg BusinessWeek explains why.
He offers a long hard look at the rapid rise and dramatic decline of the site, concluding that the reasons involve mismanagement, poor technology, bad decisions, and Rupert Murdoch‘s lack of interest.
We picked out a few of the key moments, but the entire article is worth a read.
- According to two former News Corp. executives, Murdoch, who was initially enamoured of his new digital plaything, lost interest in Myspace as his pursuit of The Wall Street Journal, which News Corp. bought in 2007, consumed his attention.
- According to a source familiar with the sale, [co-founder Chris] DeWolfe is also a finalist to buy the company. DeWolfe declined to comment.
- “I learned a lot from Roger Ailes about trying to buck bureaucracy,” says DeWolfe.
- “They were having to do all technical innovations to address the various panics that are happening. Basically their development cycle turned into one of crisis management, not one of innovation.”
- “Facebook did a fantastic job of hiding behind the panic around Myspace and basically saying, ‘We’re totally safe,’ ” says Boyd.
- On Murdoch’s decision to let MySpace fall by the wayside: “Part of it might have been the zeitgeist around him,” says DeWolfe. “[Murdoch] not being surrounded by the kid playing football in the middle of Texas and all the cheerleaders still using Myspace and the different demographics that Myspace still owned in a huge way.”
- Murdoch is now completely invested in The Daily, and doesn’t care what happens to Myspace.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.