What is Tom Anderson's net worth?
Tom Anderson is an American entrepreneur with a net worth of $60 million. He earned his wealth as the co-founder of the pioneering social networking site Myspace and through strategic real estate investments. In 2003, he co-founded Myspace with Chris DeWolfe and later served as president and strategic adviser. He became a recognizable figure because every new Myspace user automatically had Tom as their first friend, thanks to his iconic profile picture.
Early Life
Born on November 8, 1970, in Escondido, California, Tom Anderson grew up with an entrepreneurial father. During his high school years at San Pasqual High, Tom was a known hacker using the alias "Lord Flathead." His hacking activities caught up with him when he breached Chase Manhattan Bank's computer systems, leading to an FBI raid at his home. Tom avoided arrest due to his age but was placed on probation. He pursued higher education at the University of California, Berkeley, studying English and later became the lead vocalist of the band Swank. Tom also attended film school at UCLA after a brief stint in Taiwan.
Career
Tom’s journey to Myspace began with his role at eUniverse, a company founded by internet entrepreneur Brad Greenspan. Prior to that, he worked as a copywriter and product tester at XDrive, a digital storage company, where he met future Myspace co-founder Chris DeWolfe. The company went bankrupt in 2001, leading Tom and Chris to co-found ResponseBase, a direct marketing firm.
In late 2002, they sold ResponseBase to eUniverse and joined the company as employees. Inspired by the success of Friendster, Tom and Chris saw the potential for a new social network. They formed a team and mimicked Friendster's popular features, leading to the creation of Myspace in 2003. After eUniverse rebranded as Intermix Media, Myspace gained substantial popularity. By mid-2005, News Corp acquired Myspace for $580 million as the site boasted 16 million monthly users, a number which continued to grow.
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By June 2006, Myspace had become the most popular social network in the U.S., a position it held until Facebook overtook it in April 2008. Following a decline, Myspace was sold to Specific Media in 2011 for $35 million, with Justin Timberlake taking a stake. At its peak, Myspace employed 1,600 people, though reductions in staff brought that number down to 400 by mid-2011.
(Photo by Mark Mainz/Getty Images)
News Corp Acquisition
News Corp's $580 million acquisition of Myspace was preceded by several restructurings and funding rounds. Early investments came from VantagePoint ($15.3 million) and Redpoint ($15.5 million). At the time of Redpoint's investment, 25% of the equity was reserved for Myspace's founders, including Tom Anderson and Chris DeWolfe. They each sold $3 million of their shares to Redpoint.
A stipulation in the Redpoint investment capped the founders' equity if Myspace sold for more than $125 million within a year. Thus, when News Corp made the $580 million purchase, the six founders received $30 million collectively, split with Tom and Chris each getting $10 million. Both were also given $30 million contracts for two years. Redpoint made $44.5 million on their initial investment, while VantagePoint gained $139 million. In total, Tom Anderson and Chris DeWolfe grossed around $40 million each from Myspace.
Other Ventures
After Myspace, Anderson invested in distressed real estate, notably in Las Vegas, which appreciated significantly. He also invested in RocketFrog, a Facebook gambling app. In 2009, he had a cameo in Judd Apatow's film "Funny People," starring Adam Sandler, Seth Rogen, and Leslie Mann. Today, Tom is happily retired.
Personal Life
Tom Anderson remains active on social media platforms like Reddit, Facebook, and Instagram. He is passionate about photography and credits his friend, photographer Trey Ratcliff, with helping him develop his skills. Tom describes his artistic goal as creating beauty, akin to painting, rather than strictly representing nature. His love for photography fuels his travels to capture stunning landscapes in places like Myanmar and Thailand. In an interview with Influencive.com, he expressed, "My passion for photography is what keeps me traveling. I have multiple homes in multiple cities, but I'm not satisfied just staying where I'm comfortable. I want to keep creating." Tom shares his travel and photography experiences on his Instagram account (@myspacetom), where he has over 630,000 followers.
