Facebook Gives MySpace a Bronx Cheer

Bigger than France. How passe. Facebook is now bigger than MySpace.

Sort of.

New data from researcher comScore found that Facebook attracted 222 million visitors in December, up 10.8% over November's total. More interesting: 22% of all Internet surfers visited Facebook last month, confirming its role as an emerging substitute for more than just Christmas cards.

MySpace didn't fare as well, adding 4 million new users globally during December. The site is now home to 125 million accounts worldwide. Impressive, but also well below Facebook's total population, which now appears to be bigger than France, Germany, and the United Kingdom combined.

Anyone else picturing News Corp. (NYSE: NWS  ) chief Rupert Murdoch steaming over stats like this? Murdoch's empire bid $12 a share -- or $580 million -- for MySpace's parent company, Intermix, in 2005, only to see Facebook emerge and attract a multibillion-dollar valuation after a $280 million investment by Microsoft (Nasdaq: MSFT  ) .

For its part, MySpace issued a sanguine response to blogger TechCrunch, which reported comScore's findings. Quoting:

MySpace continues to dominate the U.S. market -- where the bulk of online advertising revenues reside -- both in terms of monetization and user engagement with more than 76 million unique users and a 40% spike in engagement year over year.

The company also said that international revenues grew 35% year over year. Fair points, all. For as fast as Facebook's user population is growing, it still trails MySpace in the U.S. Research further suggests that revenue growth isn't keeping pace with user growth.

We also know that key employees have left and that management is no longer allowing staff to sell stock. And yet Facebook is growing massively even as others struggle to be more social. Yahoo! (Nasdaq: YHOO  ) kicked its Kickstart network to the curb in December, for example.

Facebook is also like salesforce.com (NYSE: CRM  ) in that it's among the few Silicon Valley firms hiring right now. Silicon Alley Insider reports that the company's recruiters are pursuing recent Google (Nasdaq: GOOG  ) cast-offs.

Facebook, in other words, is still one of the world's great growth stories. A story that just got a lot more interesting.

Get your clicks with related Foolishness:

Stock news, financial commentary, and your daily dose of Foolishness: Get plugged in to The Motley Fool on Twitter!

Google is a Motley Fool Rule Breakers recommendation. Microsoft is an Inside Value pick. Try either of these Foolish services free for 30 days. There's no obligation to subscribe.

Fool contributor Tim Beyers had stock and options positions in Google at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. The Fool's disclosure policy likes sweet tea in the evenings.


Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 816794, ~/Articles/ArticleHandler.aspx, 8/27/2014 6:56:27 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement