While Facebook focused on creating a platform that allowed outside developers to build new applications, Myspace built everything in-house.Shawn Gold, Myspace's former head of marketing and content, said "Myspace went too wide and not deep enough in its product development.
There are several suggested explanations for its decline, including the fact that it stuck to a "portal strategy" of building an audience around entertainment and music, whereas Facebook and Twitter continually added new features to improve the social-networking experience. Gittelman suggested that the 0 million three-year advertisement deal with Google, while being a short-term cash windfall, was a handicap in the long run.
However, the features were often buggy and slow as there was insufficient testing, measuring, and iterating.
Danah Boyd, a senior researcher at Microsoft Research, noted of social networking websites that Myspace and others were a very peculiar business—one in which companies might serially rise, fall, and disappear, as "Influential peers pull others in on the climb up—and signal to flee when it's time to get out".
In February 2005, De Wolfe held talks with Mark Zuckerberg over acquiring Facebook but De Wolfe rejected Zuckerberg's million asking price.
Some employees of Myspace, including De Wolfe and Berman, were able to purchase equity in the property before My Space and its parent company e Universe (now renamed Intermix Media) was bought.
That deal required Myspace to place even more ads on its already heavily advertised space, which made the site slow, more difficult to use, and less flexible.