Tom Anderson at a Glance
Tom Anderson Net Worth: From Myspace Co-Founder to Entrepreneur
Introduction: The Rise of Tom Anderson
Tom Anderson, best known as the co-founder of the social networking giant Myspace, has built an impressive net worth of $60 million. This article delves into the life and career of Tom Anderson, exploring his journey from a hacker in his youth to a prominent entrepreneur, investor, and photographer. We’ll examine his early life, the creation and eventual sale of Myspace, his subsequent ventures, and his current passions.
Early Life and Influences
Born on November 8, 1970, in Escondido, California, Tom Anderson’s early life was marked by a spirit of innovation and a touch of rebellion. His father, an entrepreneur with a penchant for unconventional ideas, instilled in him a drive for creativity and a willingness to take risks. During his high school years at San Pasqual High, Anderson, under the alias “Lord Flathead,” explored the world of computer hacking. This early foray into the digital world led to a run-in with the FBI after he breached Chase Manhattan Bank’s computer system. Although he avoided arrest due to his age, he was placed on probation, which likely shaped his future decisions.
After high school, Anderson pursued higher education, attending the University of California, Berkeley, where he studied English. His interests were diverse; he later became the lead vocalist for the band Swank before transitioning to film school at the University of California, Los Angeles. These experiences showcase a dynamic personality and a wide array of interests, which would later influence his approach to business and technology.
Career: Building Myspace from the Ground Up
Tom Anderson’s career took a pivotal turn when he joined eUniverse, founded by internet entrepreneur Brad Greenspan. While working at eUniverse, Anderson met Chris DeWolfe, with whom he would later co-found Myspace. Before Myspace, the pair started ResponseBase, a direct marketing company. The acquisition of ResponseBase by eUniverse in 2002 set the stage for their next major venture.
The idea for Myspace emerged in late 2002, inspired by the success of Friendster. Recognizing the potential of social networking, Anderson and DeWolfe, along with a team of eUniverse employees, aimed to create a platform that surpassed the features of its competitor. Anderson was instrumental in creating the first Myspace pages in 2003. The platform quickly gained traction, evolving as eUniverse became Intermix Media. By the summer of 2005, Myspace boasted 16 million monthly users, and by January 2006, an astonishing 200,000 new users were signing up daily. Myspace quickly rose to become the most popular social network in the United States by June 2006, a position it held until April 2008, when it was surpassed by Facebook.
Kevin Winter/Getty Images
Myspace’s impact was profound, employing 1,600 people at its peak. However, as Facebook gained momentum, Myspace’s popularity waned, leading to workforce reductions. In June 2011, Myspace was sold to Specific Media for $35 million plus a 5% equity stake, with Justin Timberlake also acquiring a small stake.
(Photo by Mark Mainz/Getty Images)
The News Corp Acquisition and Its Aftermath
The sale of Myspace to News Corp for $580 million in 2005 marked a significant milestone in Tom Anderson’s career. The acquisition was preceded by several rounds of funding. VantagePoint provided an early investment of $15.3 million. Later, in February 2005, Redpoint invested $15.5 million. A significant portion of the equity was set aside for the founders, including Tom Anderson and Chris DeWolfe. They each sold shares to Redpoint for $3 million.
However, the Redpoint investment had a condition: if Myspace was sold for over $125 million within a year, the founders’ stake would be capped at that valuation. Consequently, when News Corp acquired Myspace for $580 million, the six founders shared $30 million. According to the book “Stealing Myspace” by Julia Angwin, DeWolfe and Anderson each received $10 million. Both Anderson and DeWolfe subsequently signed two-year $30 million contracts with News Corp. Redpoint benefited significantly from the deal, realizing a profit of $44.5 million on their $15.5 million investment in less than a year, while VantagePoint made $139 million on its initial investment. Between cash outs, acquisitions, and salaries, Anderson and DeWolfe each grossed approximately $40 million from Myspace.
Other Ventures and Investments
Following the success of Myspace, Tom Anderson diversified his investments. He ventured into distressed real estate, notably in Las Vegas, where his investments reportedly appreciated substantially. Anderson also invested in RocketFrog, a Facebook gambling app. Demonstrating his multifaceted interests, he made a cameo appearance in the Judd Apatow film “Funny People,” alongside actors like Adam Sandler, Seth Rogen, and Leslie Mann. Today, he describes himself as “happily retired,” although his continued investments and creative pursuits suggest a dynamic lifestyle.
Personal Life and Passion for Photography
Beyond his entrepreneurial achievements, Tom Anderson maintains an active presence on various social media platforms, including Reddit, Facebook, and Instagram. He has cultivated a passion for photography, which has become a significant part of his life. Influenced by photographer Trey Ratcliff, Anderson has honed his skills and developed a unique artistic style. He approaches photography with a painter’s eye, aiming to create beautiful images rather than simply replicating nature. He has developed his passion for photography through international travel, capturing landscapes in locations such as Myanmar and Thailand. He has multiple residences and continues to seek new experiences, posting his work on his Instagram account, “myspacetom,” where he has amassed a following of over 630,000.
Conclusion: Legacy and Continued Ventures
Tom Anderson’s journey from a young hacker to a co-founder of a groundbreaking social networking platform is a testament to his vision, adaptability, and entrepreneurial spirit. His impact on the digital landscape is undeniable. His success allowed him to make lucrative investments in real estate and other ventures. His passion for photography adds another layer to his multifaceted personality. As Tom Anderson continues to pursue new interests, his story serves as an inspiration for entrepreneurs and creatives alike. His continued presence on social media and his commitment to his craft suggest that this “retired” entrepreneur remains an active and engaged figure in the modern world.