Greed 2.0?

Posted on June 27, 2007
Filed Under Web 2.0 Kool Aid |

by Deadline Hollywood Daily that Chris DeWolfe and Tom Anderson of MySpace fame are asking for $50 million in compensation over the next two years in order to stay involved with the social networking giant which News Corp. acquired for $580 million. As Duncan Riley on TechCrunch points out, the request seems absurd on the surface but does raise a valid issue when it comes to Web 2.0 services: are the people who were wholly or partially responsible for the growth of a community, and who are associated with its culture, a crucial component to continued success once the service has achieved critical mass?

It’s a difficult question to answer. I think two logical considerations seem to indicate that the compensation demands are unjustified:

On the other hand, several considerations provide a different perspective:

Given that Deadline Hollywood Daily’s sources are stating that the chances News Corp. will give in to Chris and Tom’s demands are “slim to none” and “highly unlikely,” it appears that both parties have different opinions on who holds the position of leverage and that often makes for drama. It will be interesting to see the outcome. If both parties stand firm and Chris and Tom end up leaving, we may have the first truly prominent experiment that will give some indication as to how important the individuals who build a community are to its continued growth and success. It’s an experiment I’d love to watch.

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