Was MySpace a Bad Acquisition?

Includes: GOOG, NWS, YHOO
by: Ashkan Karbasfrooshan

The authors of “Curse of the Mogul”, namely Jonathan Knee, Bruce Greenwald, and Ava Seave, allege that media moguls are a bunch of idiots, basically (note to their lawyers: yes, I am paraphrasing).

Via Business Insider:

For instance, News Corp acquisitions in the past decade, from the Journal to MySpace, have not gone over well. News Corp wrote down $3 billion on the Journal, and MySpace is pretty much worth zero at this point.

I understand MySpace [2009] < MySpace [2005] - granted, but still, am I crazy or was that not a great deal: Google (NASDAQ:GOOG) paid Fox Interactive Media $900M to serve text ads on the digital properties of News Corp. because it wanted to block Microsoft and Yahoo! (NASDAQ:YHOO) from landing the MySpace inventory.

News Corp. (NASDAQ:NWS) paid $580M for Intermix, which owned MySpace.

Today MySpace is no longer the largest social network out there, but it remains a very fierce player in music and entertainment.

I fail to see how it was a bad deal, even if its value keeps falling over time.