The Acquisition of MySpace – Essay Example
The paper "The Acquisition of MySpace" is an excellent example of a business essay. The idea of Chris DeWolfe when he bought MySpace was to run a contraption which was called E-scooter. This then saw DeWolfe expand his internet business. DeWolfe and his co-founder Anderson then did make a good decision to have in the 66% equity to eUniverse as this then brought them a lot of opportunities to expand their business this is because News Corp had quality marketing tools and it also owned a large community online. According to Cliff and Weintraub (2006), this was much beneficial to Anderson and DeWolfe to have 66% of their equity given to Rupert Murdoch. Besides, this presented MySpace with a chance to stand at more competitive grounds than other competitors in the same market. This also made it easier to respond quickly to changes in the tastes of their customers and respond to the changes effectively.
The acquisition of MySpace as a part of intermix later came following the decision of existing shareholders of MySpace to receive $3.75 million and offering $5 million to the new MySpace which was a package of Intermix. This however according to me was a good decision. This is because the initial stakeholders of MySpace having been the ones who funded Red Venture were in a position to make more profit of over $60 million (Cliff and Weintraub 2006). This, therefore, was not a profit on the part of Intermix alone. In regard to the profit that MySpace was to benefit from the Acquisition, I would also have made the same decision.