Silicon Beach Startups Spawn From the Ashes of MySpace

McGruber writes "The NY Times reports how the alumni of distant also-ran social network Myspace have created an impressive number of spinoff internet companies. These companies have so significantly changed the Los Angeles area's tech scene that the area has been dubbed the 'Silicon Beach.' The article also provides details about the demise of Myspace under the ownership of Rupert Murdoch's News Corporation. When YouTube launched in February 2005, many at Myspace wanted to introduce a similar feature. Travis Katz, who had joined Myspace as general manager of international business just after the acquisition, said he remembered telling News Corporation representatives that they would need to hire 40 developers immediately and 200 the next year. 'That was much faster than anything they were accustomed to,' Mr. Katz said. 'They said, "We're going to do a hiring freeze for six months and take a deep breath and determine then what we really need." But we couldn't wait six months. In six months, YouTube went from two million to 80 million users.'"

Intangibles

[wrackspurt]

Look at all the resources something like Rupert Murdoch's News Corporation has and the momentum Myspace had. If you go with the hypothesis the big guys never loose because they have all the resources this flies in the face of that idea. Contingency and intangibles still play a part. Big organizations that can't react fast to changing markets are vulnerable in other ways compared to small, fast to react start ups. It's good to see talent and innovation can still come out on top.

Re:Tough to sustain innovation after an acquisitio

[NoNonAlphaCharsHere]

No, it's the influx of upper (and middle) management who just don't "get it". The very things that made the company an attractive acquisition are the things that the new management has the most difficulty staying out of the way of. They don't understand the product, the methods and philosophy that led to this point. They just can't help themselves from tweaking and adding their personal touch to everything. The interference (or new, added, inertia) is what keeps the shark from moving forward fast enough to stay alive.