Chad Brand

News Corp. Should Consider a MySpace IPO in the Near Future (NWS)

Most tech IPO prices are not justified by current sales and profits. I think $5 billion would be reasonable given that any IPO will not take place for some time and the company is growing very rapidly (in hindsight the 10B number is far too high). If the Vonage IPO implied a $2.5B market value, I think MySpace could fetch $5B given that the retail interest would be very, very high. They also would not have to do a full spin-off, as most deals are not. Sell 20% and recoup your initial investment.