Well, according to owner Rupert Murdoch (News Corp) MySpace is valued at about $6 billion - already ten times more than the $580 million they paid earlier this year and also 4 times as much as the $1.6 billion price Google paid for Myspace a month ago…

We think this is absolutely bull-crap - how could anyone ever expect to make a profit on a $6 billion investment? A good business breaks even within two years, which means that any new buyer would need to make about $3 billion each for two years. We all know the internet and Web 2.0 are going places, but those sums are insane, and all the profit is coming from advertising revenue. And advertising is a very subjective decision - MySpace is not selling a physical product.

According to MySpace they currently have 130 million users, which keeps on growing at 8 million a month. Although they admit that “some” of the accounts are indeed inactive, we’d like to guess a percentage of inactive accounts - let’s say, ummm, maybe, a third of all accounts? How people on MySpace actually use it frequently anyway? Not being a big fan of MySpace, our opinion is that MySpace is used more commercial interests by commercial parties these days, than it is being used by individuals to socially connect to others. But hey, who are we to judge Mr Murdoch and his gang?

We just don’t like MySpace that much…

(via Mashable!)