Could Myspace Be Shutting Down in 2011?
Rupert Murdoch’s News Corp. put Myspace on notice on Wednesday, saying the losses at the ailing social network were unsustainable and there needs to be improvement in the next few quarters. News Corp. bought Myspace for 580 million dollars in 2005 and we all know that the sites traffic has declined over the years. In fact we took a look at the traffic numbers for Myspace and Facebook according to compete.com and as you can see from the chart below the myspace traffic (blue line) is down about 20% and Facebook has about that percentage in growth! Is Myspace a lost cause or will Rupert Murdoch save the sinking ship?
“We’ve been clear that Myspace is a problem,” News Corp. president and chief operating officer Chase Carey said during a conference call with analysts after the media and entertainment giant released its quarterly earnings. “The current losses are not acceptable or sustainable,” Carey said. “Our current management did not create these losses but they know we have to address them.”
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