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The latest issue of Wired has an in-depth story of Rupert Murdoch, the media mogul of News Corp., and his journey into the dot-com world. According to Rupert, media is undergoing the biggest change in centuries; that is, media is rapidly moving towards participatory media. In a sense, the audience is becoming media.
However, Rupert thinks it's a huge opportunity for traditional media. And, of course, over the past year, News Corp. has made big bets on the Net space. No doubt, it's biggest coup was the purchase of MySpace.
MySpace is a media property that was a no-brainer for Murduch. Content costs? Well, it's practically nothing (hey, it's user generated content). Also, the cost of customer acquisition is practically zero too. That is, MySpace is built for "word of mouth" viral marketing. Also, MySpace targets the coveted teen demographic – which is extremely difficult to reach. What's more, MySpace is a platform for current pop culture. Then again, Murduch understands the power of pop culture, as with shows like The Simpsons and American Idol.
According to the Wired piece, Murdoch was not the only interested party. Viacom was also deep in negotiations with MySpace. However, it quibbled over price.
Also, Google was at the table. The company could have bought MySpace for half the price Murdoch paid. But, Google thought that the technology was fairly pedestrian.
Well, it's not always about great technology. Sometimes, it's very simple things – at the right time – that make the difference. And, for Murdoch, MySpace was one of those opportunities a legendary dealmaker rarely sees -- but must act on.
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