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The aim of the Fiasco Awards is rewarding the best projects in the ICT field that have ended up as a FIASCO. We want to promote a critical spirit, a positive attitude towards the obstacles in the road to success, and why not? let's admit it: to have fun. More »
Don't be afraid (D'on ve el fred? - ¿Dónde vive Alfredo?)
Finalist Fiascos
MySpace

History
MySpace was the first great social network on Internet. It was created in 2003 and reached 70 million users by 2007, being clearly oriented to musical contents. Half this way, Robert Murdoch, the Fox magnate, bought the company for 585 million dollars (not bad for 2 years' work!), attracted by the new way people were contributing contents to the net. MySpace was, therefore, the great bet of a "traditional" massmedia empire to access the Internet market.

The Fiasco
But an unexpected actor came out: Facebook. In recent years, the competition between social networks has been fierce and the result is that today MySpace has 40 million users while Facebook has 600 million, and that if in 2009 the losses were "only" 22 million dollars, in 2010 it lost 74 million. In spite of the changes in looks and management teams, at the beginning of 2011 MySpace has announced the lay off 47% of their 500 employees, with the objective to leave the company ready to be sold. Someone wants to offer 585 million dollars? Maybe they would sell it to you for a little less.

Lessons learned
In this case it was not true the saying "caller first, called twice". Facebook started in 2004 but has exceeded MySpace. Nevertheless, we are not at the end of the game. On Internet one can win or fail spectacularly, however successful restructurings are not very usual. Could MySpace be the first case?

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