Harvey Weinstein Finally Sells MySpace for Millionaires
Weinstein Company is selling its exclusive social network for rich people to a Swiss heir, the Los Angeles Times is reporting. At last, circumstances have forced the company to do what it should have done years ago.
Weinstein Co. will offload its majority stake in ASmallWorld.net to mogul Patrick Liotard-Vogt, scion of the family that started Nestle Corp., sources tell the Times. There's no word on the price.
But there's every reason to think it will be depressed. A Small World was movie honcho Harvey Weinstein's first internet investment, and it soured quickly: Fully a year and a half ago, the VIP members were already complaining about emails pestering them to log on to the site and about the increased ads. Traffic has remained flat for years, while Facebook soared. The problem was fundamental: Rich guys don't want to socialize only with one another, and once you let in enough attractive young women and such your VIP site loses it cachet and everyone might as well just hang out on Facebook, which Metcalfe's law teaches us is exponentially more useful anyway.
Not that Weinstein suddenly realized any of this; he's cutting his losses only now that circumstances have forced him to, and probably at a fire-sale price. At least now he can focus on trying to save his flailing movie company. The members of a Small World have plenty of other ways to entertain themselves.