MySpace Likely Headed for a Sale
PrintIt looks like News Corp might finally be ready to dump its faltering MySpace social network, according to Paid Content. News Corp has taken a $275 million charge on its most recent quarterly earnings thanks to all the losses incurred by MySpace. Management seems not to be satisfied with just redesigning the site an laying off staff, they're ready to get out. News Corp COO Chase Carey said the new metrics were looking up, and they were looking at "strategic options". "But the plan to allow MySpace to reach its full potential may be best achieved under a new owner," he added.
The site was once the darling of the social web, but after its acquisition by News Corp, the site's fortunes quickly turned. With the decrease in traffic, advertising revenue was down quarter after quarter. Most observers believe the cuts in recent months were made to get the division ready for sale. This talk about good metrics is probably mostly bluster to put a happy face on things. News Corp is hoping to attract offers, but who would be willing to take the risk?
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Trendecide
February 02, 2011 at 5:37pm
Ladies and gentleman, here you see a foreshadowing of the future for Facebook. Exciting times!
violian
February 03, 2011 at 12:01pm
I wholly agree with you. I think the demise of MySpace is because of the ad overkills that inhibits actually using the functionality of the social network, the abundance of fake profiles, hacked accounts, and what appears to be a lack of direction by Myspace management.
Facebook is heading that same direction. It is super annoying when I log on to Facebook, and 2/3 of my News Feed is about Gwen Stefani's upcoming comcert, the Black Eyed Peas upcoming concert, etc; and that I should buy the tickets. And all these friend-requests from fake profiles. There was a time when you had to be a student of sort to register on FB, but now that they've opened it up to everyone.....that's the problem. The recent spurs of hacked FB accounts is also causing turmoil.
I can totally see the demise of FB in the near future. I used to spend 1-3 hours everyday on FB back when FB was clean and simple. But now, it's like 30 minutes per week.
someuid
February 02, 2011 at 3:45pm
"This talk about good metrics is probably mostly bluster to put a happy face on things."
You hit the head on that nail so hard, the nail went right through the board.
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