News Corp. COO Chase Carey, who earlier this month said MySpace’s losses are “not acceptable or sustainable,” said News Corp. is now open to all options for the formerly popular social networking and independent music website.
News Corp. reported an 8% profit growth in its latest earnings report, much of which was attributed to a 16% increase in advertising revenue on the company’s domestic television channels, like FOX News. However, MySpace has been dragging News Corp down almost since it made the dubious decision to purchase the website in 2005 for $580 million.
The Wall Street Journal summarizes why the outlook for MySpace has been so grim:
The site faces plunging traffic and ad revenues. MySpace had 58.1 million unique visitors in October, down 9.3% from the same period last year, according to comScore Inc. Ad spending on MySpace is expected to decline 37% this year to $347 million… The segment that includes MySpace reported an operating loss of $156 million in the quarter ended Sept. 30 primarily because of the site’s poor performance.
At this point MySpace is looking into any and all ideas, including working with long time rival Facebook and completely overhauling the site to focus on “social entertainment.”
“There are opportunities here to do 20 things (with MySpace),” said Carey, “but that doesn’t mean you’re going to do any of the 20.”
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