MySpace Misses Google Guarantees, Costs The Company $100 Million

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On the News Corp. (NWS) call tonight all three excutives — Rupert Murdoch, Chase Carey, and Dave Devoe — agreed that MySpace fell short of traffic targets, and therefore wouldn’t get the full $900 million in revenue due from its deal with Google.

What they couldn’t agree on was how much they wouldn’t get.

Murdoch said it will be significant, that News Corp. would get a touch over half of the money. Then Carey (we think) said it would be a drop of $300 million. Finally, Devoe stepped in and said it would be down by $100 million.

And that looks like it is the correct answer. News Corp says MySpace will miss $100 million on the $300 million due this year from Google, tweets Paid Content

MySpace had a 26% revenue drop according to Devoe, and the company is a “work in progress.” Repeatedly, the executives on the call said that MySpace was changing. Devoe said he doesn’t know what MySpace will look like in 12 months. There is no clear vision.

Earlier on, Chase Carey said, “We’re not competing with Facebook or Twitter. We’re building key content sites like music, video, and gaming.”

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