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News Corp. On MySpace: “Current Losses Are Not Acceptable”

Talk of possible sale or shutdown circulates again

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[ Social Media]

To be clear: we don’t mean to spread rumors or alarm anyone.  But MySpace employees might want to consider setting aside some extra money and updating their LinkedIn profiles, as one News Corp. exec hinted during an earnings call that a drastic cost-cutting action of sorts may occur.

A large round (or two) of layoffs is one possibility.  A sale or even shutdown of MySpace doesn’t seem to be out of the question, either.  News Corp. COO Chase Carey made the situation sound quite serious.

As reported by the AFP, News Corp. COO Chase Carey told investors late yesterday, "We’ve been clear that Myspace has been a problem."

Then Carey continued, "The current losses are not acceptable or sustainable.  Our current management did not create these losses but they know we have to address them."

Finally, in terms of setting a timeframe for whatever move News Corp. will make, the COO hinted, "I think it is something we look to judge in quarters, not in years."

It’s hard to imagine MySpace could just go dark; to people of a certain age, it feels like the site’s been around forever, and it still has lots more users than many other networks.  At the same time, MySpace has clearly lost the numbers game to Facebook, and the site’s reputation/image has had better days.

News Corp. On MySpace: “Current Losses Are Not Acceptable”
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  • http://www.roostie.com Roostie Music-Panel

    MySpace has for years been on the leading edge of self-promotion, but then over recent times other stiff competition, such as twitter, facebook, roostie.com and other sites have all contributed to its demise …

  • http://irmgardhartmann.com Irmgard Hartmann

    I’m not surprised, since years I am member of myspace, but also the groups are now all with facebook. Myspace are to late and maybe to big to change faster. They are take a look of things what for me really not important and let the kind of business what brings money pass away.

  • http://www.facebook.com/profile.php?id=1608256977 Edward Mikalski

    You must be joking,please say you are.On Reverb nation they pay us and the site works.Groans from Teddy in Denmark

  • http://www.facebook.com/profile.php?id=1608256977 Edward Mikalski

    I dont know George neither do i wish to .-))

  • http://www.myspace.com/rafael-minuesa Rafael Minuesa

    MySpace was the fifth most-viewed site when it was bought by News Corp, but instead of innovation it got a management that applied outdated marketing strategies and dulled the whole thing.

    It is simply amazing that in this age, seeing how the Internet evolves, some people still think we live in the 50s, and the best marketing strategy is to force “dumb” customers into doing what seems to be profitable for the company in the short term.

    Even Microsoft is starting to get it right, but these people just don’t get it. Many start-ups would kill for having the opportunity of managing and making loads of money with such an outlet Instead it’s going down the drain, and what’s even worse, the current owners will rather choose to shut off the service before allowing anyone else to succeed where they have failed. And Facebook, which was clearly inferior, will keep growing without even trying …

  • D-Trix

    Wtf Whats happening to myspace!!!!!!!!!!!! this is buul sh%t. old myspace is better

  • http://www.myspace.com/gr8musicvenues Guest

    News Corps So called Recent upgrade of Myspace is turning Millions of myspace users away into the waiting arms of Facebook & other Sites.
    The Upgrade is Slow, Boring & a Higgled Piggled Mish Mash of Spam, Video’s & Advertising.

    WAKE UP News Corps & see what your users are saying , Check out Link- http://www.myspace.com/events/View/8095246

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