What happened to MySpace?

How MySpace Changed the Internet

Before TikTok, Instagram, or even Facebook became household names, MySpace was the start of social media. Co-founded in 2003 by Tom Anderson, it became the worlds most visited site with over 75 million users. Three years later, it was sold for $580 million, and Anderson disappeared from the public eye.

Startup Story of Tom Anderson

Hacker turned startup founder

Growing up in San Diego in the 1970s, Anderson first gained attention as a teenage hacker. At 14 years old, he hacked into Chase Manhattan Bank’s systems, earning a visit from the FBI. Though his young age spared him from serious legal trouble, the experience sparked his interest in networks, computers and in breaking the rules to create something new.

Anderson’s journey continued with degrees in English and film, a stint as a punk band singer, and eventually, a job at XDrive, a digital storage startup. It was there that Anderson met Chris DeWolfe, his future co-founder of MySpace, however they would create another successful startup together before MySpace, named ResponseBase.

In 2002, they sold Responsebase, their email marketing startup, to eUniverse for a small check. At the time it wasn’t obvious for the founders, but this was the first step in creating what would become the start of social media.

Building MySpace

eUniverse was a digital entertainment company with a user base of 20 million email subscribers and a network of popular websites. Since both Anderson and DeWolfe stayed at eUniverse after the sale, they decided to pitch the executives the idea of MySpace for the first time.

With eUniverse’s resources—developers, funding, and audience—MySpace launched in 2003. The company’s email lists and marketing machine gave the platform a head start, helping it quickly gain traction.

The online community of MySpace offered a digital space for complete user customization. Users could design their profiles, embed music, and use HTML to create a space that felt uniquely theirs. It became the go to site for teenagers, artists, and creators looking to connect and showcase their work.

MySpace quickly became the platform that defined social media in the early days, and at its peak, had over 75 million users worldwide. At one point it became the most visited site on the internet, even surpassing Google.

Selling MySpace for $580 million

Three years later, in 2005, MySpace caught the attention of News Corporation. With millions of loyal users and thousands of new profiles being created every day, News Corporation acquired MySpace for $580 million. The news caught every major headline as one of the largest deals in tech history at the time.

Under News Corp’s ownership, MySpace hit its peak, generating $800 million annually by 2008 through advertising and partnerships. Three years later MySpace had failed to keep up with Facebook as its competitor and strangely sold to musician Justin Timberlake for only $35 million. Today the platform is non-existent, although the domain remains.

Where did the founder disappear?

After leaving MySpace, Anderson stepped away from the tech world and pursued his passion for photography, with the other co-founder continuing to build new startups.

With what can be assumed to be a healthy payout from the acquisition, Anderson has avoided the spotlight and completely removed himself from the startup world - making him a guy of speculation and interest even today.

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