As MySpace continues on a downward spiral, it looks like it’s taking Fox with them. With probably one the worst real estate deals in history, News Corp is shelling out more than $1 million a month for 420,000 square feet in Playa Vista, near LAX.
According to Bloggingstocks.com, the deal was signed in August 2008 by Peter Levinsohn, former president of the Fox Interactive Media Unit. At the time, he issued a chest-puffing memo claiming it was “the single biggest real-estate transaction in Los Angeles in the last 25 years.” Fortunately, he didn’t mix the word “genius” in there at all.
Because of this monstrous deal, News Corp is on the hook for 12 years for what is ultimately expected to cost $350 million – not that much less than what the company has paid for MySpace itself! In fact, it’s going to skyrocket to $2 million a month in 2010. WTF?
Cranky Murdoch, is threatening to block newspaper content from Google. Seriously? Watch your subscriptions take a nosedive. I wonder what Chris DeWolfe and Tom Anderson doing these days?