MySpace, News Corp., and Credibility
February 4, 2011
I read “News Corp’s MySpace Sale Options Include New Investors, Management Buy-Out”. The story was clear. News Corp. is going to get rid of the social networking service. What caught my attention was this statement in the write up:
“The new MySpace has been very well received by the market and we have some very encouraging metrics. But the plan to allow MySpace to reach it’s full potential may be best achieved under a new owner.”
I had in my Overflight files a 2006 story in Fortune via CNNMoney.com called “News Corp. (Hearts) MySpace.” That story reported:
MySpace has simply exploded since the deal was done last July. Measured in terms of page views, MySpace has become the second-most popular site on the Internet — behind Yahoo!, but ahead of MSN, AOL and Google. It has 66 million members, and about 250,000 new ones sign up each day. That’s a mind-boggling growth trajectory for an Internet site that was launched less than three years ago. “It looks like the best acquisition we’ve made in a long, long time,” Peter Chernin, the second-in-command at News Corp., said in an interview with FORTUNE. “MySpace is the single biggest growth opportunity this company has.”
Has MySpace been the home run referenced in the 2006 story? I had tucked away a story call MySpace vs Facebook, which ran in HubPages. The original was offline when I checked this morning, but I found a copy of the 2009 article in the Google cache. TechCrunch reported in January 2009 that Facebook had 200 million unique worldwide visitors. The figure was twice MySpace’s traffic.
Short take: consumers vote with their clicks. In the click department, Facebook is at 500 or 600 million and MySpace is for sale. Does this case example shed light on the outlook for the News Corp. iPad newspaper. We think it does.
Stephen E Arnold, February 4, 2011
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