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MySpace Losing $1 Million Per Month On Empty Offices

Shelved expansion plans stick social network with extra space

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[ Social Media]

Don’t be shocked if ads for 420,000 square feet of office space start popping up all over MySpace.  It seems that the social networking company no longer intends to use a particular facility, but until it can unload the space, has gotten stuck paying over $1 million per month.

MySpace LogoMatthew Garrahan reported late yesterday, "The company is locked into a 12-year lease worth about $350m that it signed in August 2008, when the number of people using MySpace was increasing and the social network was running out of space in its Beverly Hills offices."

The economy in general has taken a big hit since then, however, and MySpace in particular decided in June to lay off about 400 employees.  Hence the decision not to go ahead with the expansion.

So MySpace has been saddled with a lot of office space in Playa Vista, California that no one (as of yet) seems interested in subleasing.  And that space will in fact become more costly to MySpace over time, since payments are scheduled to increase.  (If you do the math, $350 million over the space of 12 years averages out to $2.43 million per month.)

Maybe this snafu will result in an interesting resolution, at least.  If not the office ads on MySpace, perhaps realtors could get offered the chance to have their profiles swapped with Tom Anderson’s for a day.

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MySpace Losing $1 Million Per Month On Empty Offices
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  • http://www.exoticchatline.com/ Chat Line

    Thanks for the post doug, nice info

  • Guest

    So thats why Murdock needs to charge for his shitty “news”

  • Mass Emailer

    Never before in the history of mankind has it been easier to reach out to people all over the world. Online communitieslike MySpace, make meeting new friends with similar interests incredibly easy. MySpace is a great place to share tips, ideas and stories about the things you find most interesting. If you have a question about your hobby, you can easily find the answer through your network of members with similar interests.

    James

    • Jack

      WTF? James, do you work for MySpace or are you just Murdoch’s ass boy? Or are you just a copy/paste bot boy?

  • http://www.livetrainingsession.com/training/flash.html Flash Training Online

    For that much money they should afford a good realtor to sublease that empty space. No wonder they have to let 400 hard working employees head to the unemployment office. The economy is less to do with MySpace decline. It’s just a playground for teenagers in need of attention.
    The last time I check, one of Rupert Murdoch Venture is no longer considered as a “News” organization but just a bunch of people making some noise and making up stuff.

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