Update: More information here.
MySpace CEO Chris DeWolfe has been with the company since its August 2003 launch, seeing it through a 2005 $580 million sale to News Corp. and growing revenue to something approaching a billion dollars a year. 130 million people around the world visit MySpace every month, making it one of the largest sites on the Internet.
And now it may be time for him to step down.
He and co-founder Tom Anderson are reportedly making an aggregate of $30 million/year under a contract signed in 2007. That contract terminates this October and must be renegotiated soon. But MySpace is under a new boss, Jonathan Miller, who joined News Corp. last month as CEO of Digital Media. MySpace is one of his assets, and he may be inclined to make a change in management.
DeWolfe is also dealing with the recent departure of three of his top executives, and more may be on the way.
A top headhunting firm is starting to scour for possible replacements. We’ve spoken directly with one person who was contacted by the firm and asked to give recommendations for possible candidates. One source close to News Corp. says that no firm has been officially retained to do a search, but won’t comment further or make any explanation as to why calls are being made.
One thing DeWolfe has always had is a close working relationship with News Corp. CEO Rupert Murdoch, who has protected him in past conflicts with other News Corp. execs. But that very relationship has been a thorn in the side of his various managers over the years. There are people at News Corp. gunning to knock DeWolfe out of the company. The question is whether Murdoch and Miller will protect him. And, of course, there is always the chance that DeWolfe will simply leave the company. Its high growth days are likely behind it, a new type of manager may be better suited to running the company going forward.
Make no mistakes… DeWolfe will find his spot in some new hot company.
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there are maybe 10 companies/website out there really popular like mysapce youtubem facebook, etc, and history shows that those brilliant people behind successes like that never really make it happen again. it is simplt too thought.
All the interviews I see with DeWolfe, I really think he’s a smart guy, but it might be time for a change at MySpace. They’re really falling behind Facebook in market share (although way ahead in revenues, according to some). Regardless, I’m sure DeWolfe will find something out there that suits him.
MySpace stinks. So it is better that Chris leaves before they blame him for it. Sure, he would find another potential startup.
him leaving on his own? where can he go to make 15 million or so doing nothing.
To the News division of the company
Right on, fire the founders, and replace them with mediocrity, like they did with Steve jobs, when Apple almost disappeared; we all know it’s a prescription for success!
Ever wondered why ebay’s traffic declines, while Amazon is picking it up? Because Amazon’s founder is still there, while ebay is ruled by corporate MBA zombies.
Wonder why Yahoo has lost to Google?
Because Google’s founders are still there, while yahoo has been run down by zombie MBAs.
Wonder why PayPal is hated by sellers while Google checkout is picking business? Beacuse payPal founder’s were kicked out as a condition of the sale.
Go on, American MBA culture!!!
You make some very good points, but I think it would have had more impact without the MBA’s are useless rhetoric.
We all know MBA’s are useless, but who says these companies are all being run by MBA’s now.
I’m a MBA. But not so zombie…. yet
I don’t think Amazon v. Ebay is the best example — Amazon always seems to have a lot of progress, a lot of innovation but a really high P/E.
Amazon has mastered the art of bringing out new “fabulous” products that allow b.s. analysts to keep large holdings of AMZN rather than dump it.
Have you actually used ebay for high volume buying/selling? I have, purchasing expensive IT equipment for my company, and reselling some extra stuff we did not need. It does not work, they are driving sellers nuts. Due to volume, they gave me a special privilege- a phone number to call, I called and yelled at them so many times…
DeWolfe has B.A. degree in Finance from the University of Washington and an MBA from the University of Southern California, where he had dual concentrations in Marketing and Entrepreneurial studies. DeWolfe serves on the board of the Los Angeles County Museum of Art and lives in Los Angeles.
via crunchbase ….
Your point might have better made if you had just said that keeping the founders, who had the vision for the product in the first place, can help the company stay innovative.
I don’t think there’s anything inherently wrong with MBAs (or with zombies for that matter).
Ok, I might have gone overboard with MBA zombies, but you see my point: there’s something inherently wrong with the business culture that ejects the founders as a rule.
After all, those people that made America great, like Ford, Boeing called the companies with their last names, which probably means that they were not building them for sale or IPO knowing that they will likely lose control of the company and will be ejected thereafter.
MSFT has had a founder until very recently too, running the company by the way.
There are probably lots of CEO positions where he could do that. He just can’t get a real job is all.
DeWolfe is a successful entrepreneur with several exits under his belt. He has made his money and built an amazing business.
Why would he want to deal with yet another corporate boss telling him how to run his business?
He’s had a great run as CEO, and the average tenure of a CEO is reported to be 3.5 years (I can’t remember the source).
Who cares … companies will do what companies will do. Sometimes what they do is smart sometimes not so much.
Good luck to DeWolfe whatever he “decides” to do.
BTW, it may be time for him to do something new. Things get boring after a while.
What’s he actually like as a leader? Does anyone know what people who work for him directly say about him? What’s his managerial style?
im ready for the myspace makeover. i could put a strategic user and business social faceplate over myspace. give it strategic personalized social expansion offerings beyond comprehension. who am i u ask?
Chief Executioning Officer
HireLocator.com – the hitman
Are you gunning for the position? lol
Why isn’t Facebook profitable like MySpace? They are similar businesses. Does anyone know?
yea facebook is trying to build a “sustainable” business aka their advertisement scheme sucks.
It might be time for DeWolfe to go and it might not, but Tom has been dragging the company down for years. His product development, or lack thereof, has been one mistake after another. MySpace still has tremendous potential but not without a visionary heading product.
He’s survived for a very long time, as execs like Peter Chernin realized they could manipulate him and seemingly hold court over digital. (And make double what DeWolfe does annually). Status quo Chernin.
However, Miller has real digital bkgrd, so he’ll find an operator who’s hungry and revenue driven…less social/party-driven, but who also obeys him completely.
Studio politics = good business card for networking, deals with startups, getting your next gig or VC role (Ross…), PAYCHECK!; but, not so good for actual innovation and executing, given divisional infighting and power grabs.
With Peter Rice being groomed for Cherin’s eventual replacement, and James or Elisabeth Murdoch to follow – my bet is look for an international head to replace current MySpace head, as they need to get more int’l to combat Facebook.
Good run for Chris, next startup…
Hw could DeWolfe be booted from his ow ompany?
easy
guys was lucky and lame. no decernable skill other than marketing , smoking dope and mauling girls — oh and appearing on tv a lot and in paris hilltons face. He couldn’t operate his way out of a paper bag. Now may the company will grow
I believe that Murdoch will come to bat for him. 30 mil sounds pretty steep, but I think they’ll work something out. Replicating the success of MySpace is going to be a difficult task and I don’t know if Chris wants to take an undertaking like that at this point in time.
My understanding is that Murdoch is no longer batting for Chris.
In my view is that Murdoch is no longer batting for Chris.Replicating the success of My Space is going to be a difficult task and I don’t know if Chris wants to take an undertaking like that at this point in time.
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30 Million a year?
Um, yeah after one year of that, I would be done entirely. Buy a boat and start sailing.
yep
Myspace ?
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