Brad Greenspan at a Glance
Brad Greenspan’s Net Worth: From MySpace to Millions
Introduction: The Rise of Brad Greenspan
Brad Greenspan is an American entrepreneur best known for his pivotal role in the creation and early success of MySpace. With an estimated net worth of $5 million, Greenspan’s financial journey is a testament to the volatile world of tech startups and social media’s meteoric rise. This article delves into the life, career, and financial ventures of Brad Greenspan, exploring his impact on the digital landscape and his subsequent business endeavors.
Early Life and Career Beginnings
Born in 1971 in Los Angeles, California, Brad Greenspan laid the foundation for his future success through education and early career experiences. He attended the University of California, Los Angeles (UCLA), where he studied political science, providing him with a broad understanding of societal structures and power dynamics—skills that would later prove valuable in the fast-paced world of business. After graduating from UCLA, Greenspan entered the financial sector, working as an investment banker at Morgan Stanley. This experience equipped him with the financial acumen and business savvy needed to launch his own ventures. In 1995, Greenspan founded Palisades Capital, his own investment bank, marking his first step towards entrepreneurial independence.
eUniverse and the Birth of MySpace
The late 1990s and early 2000s were a period of rapid innovation in the digital world, and Brad Greenspan was at the forefront. In 1998, he founded eUniverse Inc., an internet company focused on building and acquiring online communities. This venture proved to be a precursor to his most significant achievement. In 2003, eUniverse launched MySpace, a social networking website that would quickly revolutionize online interaction. Greenspan collaborated with Chris DeWolfe, Josh Berman, and Tom Anderson to develop MySpace. MySpace quickly became a global phenomenon, offering users the ability to create profiles, connect with friends, share content, and join communities. This free-to-use model was a key factor in its widespread adoption, a decision heavily championed by Greenspan, who resisted initial plans to charge users. Greenspan resigned from eUniverse in late 2003 amidst a boardroom dispute. At the time, he held a significant 23% stake in the company, which was publicly traded.
In 2003, eUniverse launched a social networking site they called MySpace. They bought the domain from a business called YourZ which had been planning to use it as an online storage and sharing site. Several of the company’s early employees and founders wanted MySpace to charge users a fee for the service. It was Greenspan who insisted it stay a free service. Obviously that was a smart choice as MySpace soon became became one of the most popular websites in the world.
The NewsCorp Acquisition and Its Aftermath
MySpace’s rapid growth attracted significant attention from major media corporations. In October 2005, News Corporation (NewsCorp) acquired MySpace for $580 million. At the time of the acquisition, Brad Greenspan owned approximately 10% of eUniverse, which had been renamed Intermix Media. This stake resulted in a substantial pre-tax windfall of roughly $58 million for Greenspan. However, Greenspan believed the valuation was significantly undervalued. He launched an effort called FreeMySpace LLC in an attempt to rally other shareholders to demand a bigger upside in the acquisition, but those efforts ultimately failed. News Corporation made a number of changes to MySpace, but the site lost popularity to newer social networking sites, such as Facebook. Despite this, the MySpace sale provided Greenspan with a substantial financial boost, solidifying his status as a successful entrepreneur. In 2011, News Corporation spun off MySpace into a separate company. The new company, MySpace Inc., was acquired by Specific Media in 2013. MySpace is still in existence today, but it is no longer one of the most popular social networking sites in the world. The site has around 1 million active users, compared to Facebook’s 3 billion active users.
(Photo by Alberto E. Rodriguez/ Getty Images for Davidson & Choy Publicity)
LiveUniverse and Subsequent Ventures
After the sale of MySpace, Greenspan ventured into new projects with unwavering enthusiasm. He launched a new company called LiveUniverse, which quickly acquired or launched over 30 different online properties. These included a video-sharing site named Revver and a social networking site called Pageflakes, which sought to replicate some of MySpace’s earlier success. However, LiveUniverse faced challenges and was effectively shuttered in late 2010.
In October 2012, LiveUniverse and Brad Greenspan personally faced a $6.6 million default judgment in a federal court over the operation of a lyrics website that allegedly failed to secure the necessary licenses for the use of song lyrics. The judgment equated to approximately $12,500 per song for a total of 528 songs whose lyrics were purportedly used without proper authorization.
Real Estate Holdings
Beyond his tech ventures, Brad Greenspan has also been involved in real estate. In November 2004, he purchased a home in the Hollywood Hills for $2.9 million. In May 2008, the property was the target of a burglary, which received some attention in the local news. He listed this home for sale in April 2009 for $3.55 million. He ultimately accepted $2.43 million in June 2013.
Brad Greenspan Today
While details about Brad Greenspan’s current business activities are not always public, his career remains a fascinating case study in entrepreneurship and the evolution of the internet. His early work in building online communities has had a lasting impact on how people connect and share information, making him a significant figure in digital history.
Conclusion
Brad Greenspan’s journey exemplifies the dynamic nature of entrepreneurship in the digital age. From his early ventures to his crucial role in the creation and early success of MySpace and his later endeavors, Greenspan has left an indelible mark on the internet. While MySpace’s dominance has waned, Greenspan’s story serves as a compelling example of innovation, risk-taking, and the fluctuating fortunes that define the tech industry. His current net worth of $5 million reflects both the substantial rewards and the inherent uncertainties involved in building businesses in the ever-changing digital world.