The launch of the new MySpace, just a few short months ago, does not seem to be saving the network’s declining traffic and revenue streams. Nor is it going to save MySpace from the News Corp. chopping board.
This week, MySpace laid off 500 of it’s employees, across the board – amounting to an astonishing 47% of it’s total staff base.
At the time, Mike Jones, CEO, stated that the decision had nothing to do with their new product, ““Today’s tough but necessary changes were taken in order to provide the company with a clear path for sustained growth and profitability,” Jones said of MySpace’s recent re-vamp. “These changes were purely driven by issues related to our legacy business, and in no way reflect the performance of the new product.” CNET
However, just a few days later, Jones confirmed that News Corp. is looking for a way to off-load the failing project. Many rumors had been flying around, that the parent company was looking for a buyer for MySpace, and it is very sad to discover, that some of them were true.
Spokesperson for MySpace, Rosabel Toa, revealed to Bloomberg just recently, that “News Corp. is assessing a number of possibilities including a sale, a merger and a spinout….. The process has just started.”
I consider MySpace’s shift in focus last year, to be a very brave attempt at saving their bacon, however, it might have been the thing that killed it for them.
Listening to the forums, it seems like the general public is not all that sorry to see MySpace go down this path – which, for me at least, indicates just how much popularity MySpace is losing.
I wonder who is brave enough to invest in MySpace now? Once acquired, will the face and shape of MySpace change yet again? Or will it be dissolved into a new & exciting venture by some big player out there? Only time will tell.