It's one of Rupert Murdoch's biggest mistakes. Or maybe the second biggest. Five years after it bought MySpace for $580 million, News Corporation has put the site on notice for continuing poor performance. AFP reports that News Corp president and chief operating officer Chase Carey says the losses are unsustainable and that it better start showing improvement over the next few quarters.
"Our traffic numbers are still not going in the right direction and we have to stabilize that and have a predictable path forward, the right cost structure and a clear path to be a profitable business," he said.
Carey wouldn't put a time frame on it but indicated it was a case of making the improvement over several quarters, not years. After that, NewsCorp would pull the pin.
According to the most recent data, MySpace has 100 million users, while Facebook has exceeded the 500 million mark and rising. So if things don't look up for MySpace, Murdoch's $580 million investment will be flushed down the toilet.
The move to acquire MySpace looks almost as bad as the Times of London's pay wall. The early figures of that are not encouraging. Another idea of Murdoch's that's not going well.
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