MySpace's Continuing Failure Catches Its Executives Off Guard

MySpace recently got a new CEO in Owen Van Natta, and according to reports, they may have a few more problems to deal with than they’d originally thought.

“The business is in a lot worse shape than Fox Interactive was positioning,” stated an anonymous source. According to a report, while MySpace’s old CEO Chris DeWolfe boasted loudly about their 120 million unique visitors, the real numbers are nowhere near. And, it’s being reported that when Google renews their $900 million advertising deal with MySpace, they’ll only guarantee $50 million per year, cutting MySpace’s ad revenue in half from $600 million to $300 million.

It’s expected that the new head honcho will make some huge layoffs, possibly cutting down their 1,500 employees in half to just 750 (but hey, it’s News Corp, how would that not be expected?).

Image Credit: MySpace