Sunday, January 14, 2007
Where does that come from?
An Unofficial History of Social Networking Websites: Part 1

Today's installment: MySpace Genesis



Persons of Interest
Chris DeWolfe: CEO of MySpace
Tom Anderson: President of MySpace
Brad Greenspan: former CEO and Chairman of eUniverse
Andrew Wiederhorn: CEO of Fog Cutter Capital Group

Companies of Interest
Xdrive Technologies, Inc.
MySpace.com
ResponseBase, LLC
Fog Cutter Capital Corp
eUniverse
Intermix Media
News Corp

1999
- Chris DeWolfe (currently the CEO of MySpace) and Tom Anderson (currently the president of MySpace) met while working together at Xdrive Technologies, Inc. (one of those internet storage sites which allow users free internet disk space in exchange for the right to sell your personal information to all bidders and the privilege to track and travel with you on all your wonderful interweb adventure...like a little super-secret sidekick...aka Spyware).

- There are said to be backups of some version of MySpace at the Internet Archive going back to at least 1999, but the current owners have blocked the Internet Archive from accessing the site. At this point MySpace (formerly freediskpace.com) is believed to have been operating as a 'free' internet storage site.

2001
- With the internet bubble burst of 2001, Chris DeWolfe, then Vice President of Sales and Marketing at Xdrive Technologies, Inc., is laid off along with his entire marketing department, including Tom Anderson. Tom, along with several former Xdrive employees responsible for the development of an email-based 'newsletter' called "Intelligent X" go on to join Chris DeWolfe's new internet startup ResponseBase, LLC.

- MySpace becomes ResponseBase, LLC and begins sending out its "Freebies, Deals, and Discounts" 'newsletters' to 'interested parties' including a list of nearly 8 million email addresses purchased from Xdrive Technologies, Inc.

2002
- ResponseBase, LLC is purchased by eUniverse (the official spyware and adware provider behind the peer-to-peer file sharing network Kazaa). At the time of purchase, ResponseBase has upwards of 30 million e-mail addresses at their disposal.

- Chris DeWolfe is named director of the Fog Cutter Capital Group, joining former high school classmate, later convicted felon, and CEO of Fog Cutter Capital Group Andrew Wiederhorn. Wiederhorn's wife, Tiffany, joins the Board of Directors for eUniverse.

2003
- According to MySpace CEO Chris DeWolf, "the general MySpace site" is launched. Recognizing the potential of the Friendster concept, a plan is hatched to quickly develop a site which will mimic the appealing features of Friendster, re-brand it as MySpace, and then out-market Friendster using eUniverse's resources. The very first version of MySpace, as we know it, is ready for launch within ten days. As part of the internal testing and promotion of the site, the company holds a contest to see who can sign up the most people. The hope being that if all 250 eUniverse employees bring on 10 friends, they will have a starting user base of 2,500.

- Brad Greenspan, the founder, CEO, and Chairman of eUniverse, is ousted by those who he refers to as "eUniverse executives who allied with venture capitalists to protect their own jobs". He remains the single largest individual shareholder.

2004
- eUniverse becomes Intermix Media.

- Armed with email addresses of over 50 million people and over 18 million monthly web users, Intermix Media continues to grow the MySpace concept by cannibalizing some of Intermix's valuable existing pay-to-play websites like CupidJunction.com.

2005
- Intermix Media is sued by the State of New York for installing malicious spyware over the internet. Just before the spyware investigation is announced, Intermix's primary investors sell $25 million worth of Intermix stock at roughly $8 per share. Former CEO Brad Greenspan accuses these primary investors of insider trading. When the attorney general announces the investigation, Intermix stock falls to $4 per share. Intermix Media settles out of court with the State of New York, agreeing to pay $7.5 million.

- DeWolfe leaves Fog Cutter Capital Group just before News Corp's purchase of Intermix Media.

- Intermix Media is purchased by Rupert Murdoch's News Corp for $580 million ($327 million the value attributed to MySpace alone).

- MySpace begins censoring links and references to competitive websites by disabling links to content hosted by YouTube. Eventually, under pressure from its users, MySpace eventually re-enables the YouTube links. As a result, MySpace reportedly turns off a MySpace blog forum where MySpace users are discussing the censorship issues.

2006
- MySpace begins banning links to Revver, another video swapping site, but relent, again as a result of user complaints. To this, Revver co-founder Oliver Luckett responds, "References to his service were banned because MySpace saw it as competition".

- Brad Greenspan launches a website and publishes "The Free MySpace Report" that calls for the SEC, the DoJ, and the U.S. Senate Committee on Finance to investigate News Corp’s acquisition of MySpace as "one of the largest merger and acquisition scandals in U.S. history". The report's main allegation is that News Corp. should have valued MySpace at $20 billion rather than $327 million, and had, in effect, defrauded Intermix shareholders through an unfair deal process.

- Brad Greenspan files a lawsuit in Federal District Court in Los Angeles thru his LiveUniverse company, accusing News Corp's MySpace of ramping up the practice of censoring Myspace users from using or even mentioning the name on their profile pages of products or websites that News Corp deems to be competitive or a source of information adverse to News Corp. The lawsuit makes use of the law in the United States to protect companies and consumers from the attempts by MySpace to illegally create a monopoly and extend its dominance of the internet social networking market. MySpace blocks usage of the products it deems competitive and goes a step further by effectively slapping gags on the mouths of the over 100 million MySpace users by replacing any attempts by users to type the url of sites like 'stickam.com' or 'vidilife.com' into a blog or profile with '.....' .

- On the CensorSpace.com website, a video link featuring Mike McGuire, a former MySpace investor expressing concerns about the News Corp's acquisition of MySpace is posted in order to demonstrate how MySpace is censoring third party video links. Anyone with a MySpace personal profile who attempts to link this video to their MySpace profile will be able to see how MySpace is censoring such third party video content links.

Glossary (from Wikipedia.com)
Internet Archive: a non-profit organization dedicated to maintaining an archive of Web and multimedia resources. Located at the Presidio in San Francisco, California, this archive includes "snapshots of the World Wide Web" (archived copies of pages, taken at various points in time), software, movies, books, and audio recordings (including recordings of live concerts from bands that allow it). To ensure the stability and endurance of the archive, a complete copy is also maintained at Bibliotheca Alexandrina. The Archive makes the collections available at no cost to researchers, historians, and scholars.

Spyware: computer software that collects personal information about users without their informed consent. Personal information is secretly recorded with a variety of techniques, including logging keystrokes, recording Internet web browsing history, and scanning documents on the computer's hard disk. Purposes range from overtly criminal (theft of passwords and financial details) to the merely annoying (recording Internet search history for targeted advertising, while consuming computer resources). Spyware may collect different types of information. Some variants attempt to track the websites a user visits and then send this information to an advertising agency. More malicious variants attempt to intercept passwords or credit card numbers as a user enters them into a web form or other applications.

Venture Capital: a type of private equity capital typically provided by outside investors for financing of new, growing or struggling businesses. Venture capital investments generally are high risk investments but offer the potential for above average returns and/or a percentage of ownership of the company. A venture capitalist (VC) is a person who makes such investments. A venture capital fund is a pooled investment vehicle (often a partnership) that primarily invests the financial capital of third-party investors in enterprises that are too risky for the standard capital markets or bank loans.

Sources:
ValleyWag
WikiNews
BusinessWeek
Wikipedia
FreeMySpace
WikiNews (2nd link)

Next Up: Facebook and the CIA connection

Labels: , ,

posted by MindSquash the Brain Worm @ 5:44 AM  
1 Comments:
  • At 12:11 PM, Blogger Johann Froeberger said…

    ResponseBase LLC was only around 30 people at the most, yet they became the worldwide, acknowledged leader in opt-in email marketing owing to unequivocal, technical superiority as per third-party metrics and evaluations. This was partly due to the unconventional systems engineering of the person all who worked there have been loathe to ever mention in public or to the press: the infamous ‘Black Francis’ who worked as the true systems architect / engineer / and administrator for all network and Linux servers. The same guy who wrote the second version of the individual-email-generator and delivery code upon which their reputation was garnered. That version was called Condor, and introduced the bulk of the database-tracked metrics as well as code maturity and fire-and-forget, automated crash-recovery and campaign fulfillment.

    Whitcomb, DeWolfe, and Anderson screwed Francis out of a share of the sale of the company to E-Universe. DeWolfe’s perpetual fraternity-boy hazing, calling Francis a ‘devil-worshiper’ and other public insults because he was gothic. My favorite one was the frequent partnering up of Josh the lawyer and DeWolfe in order to publicly snub and insult Francis after Francis would deliver something amazing or achieve something phenomenal: the pair would walk over to Kyle Brinkman’s cubicle, right in front of Francis’ and then laud and thank and congratulate Brinkman, giving him credit for what Francis had accomplished. Aber Whitcomb frequently witnessed this, yet never put the clowns in their place. Brinkman himself played into the abuse and always gladly took credit for Francis’ own accomplishments. What real function did Brinkman really serve there, anyhow, his only claim or credit being that he was Tom Anderson’s roommate...

    The circus of clowns who were Responsebase had their hardest laugh at Francis’ expense in denying him a portion of the pie when E-Universe bought the company. Yet the dude persisted, shrugged off the repetitious disrespect as was his characteristic custom. He remained with E-Universe only 3 months before resigning after he was apprised of the technical details of the covert and true focus of effort at E-Universe: the unethical, unlawful infiltration and subversion of certain GUI elements of operating systems in order to secretly control search engine results displayed in any browser used. Those mouse icon embellishments one could enable were sinister compromises to the integrity of your computer, and Francis wanted no part of the insane criminality of this. If you want the real dirt on ResponseBase, and by some extent of the subsequent Myspace, of which he had no part, you want to find ‘Black Francis’ — Francis from ResponseBase LLC. He’s got the real dirt, and its a story that will shock you to hear. It is a tale whose time has now come to be told.

    F.

     
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