Richard Rosenblatt, chairman-CEO of Demand Media and former CEO of Intermix, told AdAge that:
“MySpace was in an interesting stage of its development [when News Corp. acquired it],” he said. “It had a different type of capital structure and we weren’t able to make the type of investments for the infrastructure. Ultimately if we hadn’t sold to News Corp., MySpace wouldn’t be around today.”
Really? I think that it would certainly be different, but I would hope that MySpace could have found a way to monetize itself.
Then again, perhaps what Rosenblatt means is that without the major investment from News Corp., they wouldn’t have been able to strengthen the infrastructure and prepare for the 100+ million users today. I usually tend to focus on what MySpace is doing for News Corp., but I suppose that it probably goes both ways.