MySpace CEO looking for a business bargain

Company sees recession as time to cherry pick new start-ups

The impending recession may spell doom and gloom for the retail and banking sector, but it seems that some tech companies – in this case MySpace – are relishing the idea of a money crisis.

Why? As it means there's a bargain or two to be had.

Speaking at the Reuters Media Summit, MySpace Co-founder and Chief Executive Chris DeWolfe spoke of the world's financial crisis, and was pretty positive about the situation, especially when it comes to picking up a start-up for a bargain price.

"At the lower levels the money dries up," commented DeWolfe. Everyone's looking for some kind of exit and the valuations we're seeing out there are definitely a small, small fraction of what they were even five or six months ago."

Number crunching

To back this up he crunched some numbers and explained via video link that some companies worth £300 million half a year ago were now worth a third less, at £200 million.

As for what the current financial climate will mean for MySpace DeWolfe, ever the optimist, believes that ad revenue would continue to rise on the site.

According to The Guardian, the company hasn't noticed a difference money-wise, commenting: "We haven't really seen any impact, other than we think we could have grown even more than we have."

ABOUT THE AUTHOR

Content Team Lead

Marc (Twitter, Google+) is the content team lead for Future Technology, where he is in charge of a 14-strong team of journalists who write many of the wonderful stories that end up on TechRadar, T3.com and T3 magazine. Prior to this he was deputy editor of TechRadar, had a 10-month stint editing a weekly iPad magazine, written film reviews for a whole host of publications and has been an integral part of many magazines that are no longer with us.