Newscorp, the multinational media company owned by Rupert Murdoch, has just sold off its stake in MySpace for an estimated $35million. The comapny bought MySpace in 2005 for a whopping $580million so thats a loss of about 94% of its money. Observers have noted that MySpace has been struggling for some time, with Facebook taking the lions share of new social networking. Having said that, since 2005, mySpace has grown from 21.8 million visitors per month to 34.9 million per month. There might be some value left in the company, but unless the new owners can do something special to wrench people from the grasp of facebook, and the new Google Plus One service, then even at a 94% discount, MySpace is still over valued.

This could be the first of many 'market corrections' of overvalued web companies which have to write off big losses. Facebook was recently valued at over £30 billion [sic] after a share buyout by Goldman Sachs. This is possibly another investment which will result in eye watering losses.