The My domain was originally owned by Your Z.com, Inc., intended until 2002 for use as an online data storage and sharing site.
By 2004, it was transitioned from a file storage service to a social networking site.
A friend, who also worked in the data storage business, reminded Chris De Wolfe that he had earlier bought the domain My
Myspace quickly gained popularity among teenage and young adult social groups.
Redstone told interviewer Charlie Rose that losing My Space had been "humiliating", adding, "My Space was sitting there for the taking for 0 million" (Myspace was sold in 2012 by News Corp for million.) On November 1, 2007, Myspace and Bebo joined the Google-led Open Social alliance, which already included Friendster, Hi5, Linked In, Plaxo, Ning and Six Apart.
Open Social was to promote a common set of standards for software developers to write programs for social networks. Google had been unsuccessful in building its own social networking site Orkut in the U. market and was using the alliance to present a counterweight to Facebook.
A complete infrastructure of finance, human resources, technical expertise, bandwidth, and server capacity was available for the site.
Shawn Gold, Myspace's former head of marketing and content, said "Myspace went too wide and not deep enough in its product development.
In July 2005, in one of the company's first major Internet purchases, Rupert Murdoch's News Corporation (the parent company of Fox Broadcasting and other media enterprises) purchased Myspace for US0 million.
After losing the bidding war for Myspace, Viacom chairman Sumner Redstone stunned the entertainment industry in September 2006 when he fired Tom Freston from the position of CEO.
However, the features were often buggy and slow as there was insufficient testing, measuring, and iterating.
Danah Boyd, a senior researcher at Microsoft Research, noted of social networking websites that Myspace and others were a very peculiar business—one in which companies might serially rise, fall, and disappear, as "Influential peers pull others in on the climb up—and signal to flee when it's time to get out".