The Second Mover Advantage
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Like that of the Roman Empire many years before, the meteoric rise of MySpace beginning in 2003 was sweeping and absolute. Although MySpace was preceded by several smaller social networking sites like Friendster and SixDegrees, none could match the user base, the press coverage, and the valuation given to MySpace by investors. For all intents and purposes, MySpace was the forefather of our modern-day notion of the “social media” platform—the behemoth with over 100 million monthly active users and millions, if not billions, of dollars in ad revenue. In fact, MySpace was purchased after a huge bidding war by the renowned News Corporation (parent company of Fox Broadcasting) for $580 million in 2005, one of the largest acquisitions of the time. And in 2006, the social networking site surpassed Google as the most visited web site, then continued to dominate the social network space for the next couple of years.