Facebook Adding $500 Million While MySpace Downsizes
Myspace led the way for companies like Facebook. However, their pioneering efforts are fading. WSJ.com reported, “Myspace is preparing to announce a dramatic downsizing. The site could lay off between a third and a half of its roughly 1,100 employees.” At the same time, “Facebook Inc. struck a deal with Goldman Sachs Group Inc. and others to raise $500 million. The agreement values Facebook at $50 billion.”
Myspace has been trying to hold on to their market share. In October, they stuck an ad deal with Google. However, that has generated far less revenue than anticipated. According to WSJ.com, “Myspace had 54.4 million unique U.S. visitors in November, down 15% from a year ago. By contrast, Facebook had 151.7 million unique U.S. visitors in November, up almost 50% from a year ago.”
Why is Facebook more popular than Myspace? Many like the cleaner layout. Facebook works on being ahead on functionality with more games and less advertising. The interface on Facebook can be more appealing as well. With Facebook’s recent format change, it is easier than ever to find out more about your friends and connections. Facebook has stayed away from the customizing features that can sometimes make MySpace overly busy. However, those that like to express their artistic side, may prefer MySpace for having that ability.
What is in store for MySpace in 2011? WSJ.com stated “News Corp. was open to all options for MySpace pending the results of the relaunch of the site.” What is in store for Facebook in 2011? “Facebook had been searching for an investment by a major financial institution that would provide a benchmark valuation for the company ahead of any public offering, which is still expected to happen in coming years.”