NEWS CORP SELLS STRUGGLING MYSPACE

News Corp. has sold their struggling social network MySpace for $35 million. The deal with online advertising network operator Specific Media is expected to close later Wednesday, a day before the end of News Corp.'s fiscal year. News Corp. will maintain less than a 5 percent stake in the company.

News Corp. bought the holding compay of MySpace in 2005 at the height of MySpace's popularity for $580 million. Since then MySpace has seen its users decline drastically due to the emergence of other more popular social networking sites, specifically Facebook.

Specific Media confirmed the acquisition but not the terms of the deal Wednesday.

"There are many synergies between our companies as we are both focused on enhancing digital media experiences by fueling connections with relevance and interest," said Specific Media CEO Tim Vanderhook, in a statement. "We look forward to combining our platforms to drive the next generation of digital innovation."

RUMOR: MYSPACE TO LAY-OFF HALF OF ITS STAFF

According to the NetworkEffect blog, News Corp's MySpace is going to be laying-off half of its staff. MySpace currently employs 1,100 people mainly in the US. It recently underwent a major redesign to focus its content on entertainment. The parent company has instructed MySpace executives to start "drastic cost-cutting measures" immediately. Most of the employees were given the week between Christmas and New Years off as a way to save some money.

NEWS CORP. MAY SHUT DOWN MYSPACE

MySpace may be in some trouble. The once popular social networking site is in danger of being shuttered. According to News Corp. COO Chase Carey the site is losing tons of money and is unsustainable.

During on an earning call Carey said "We’ve been clear that MySpace is a problem. The current losses are not acceptable or sustainable." and he wants to see Myspace on “a clear path to profitability” on a timetable measured “in quarters, not in years.”

News Corp. paid $850 million for the networking site back in 2005. Of course this was before Facebook emerged and became the dominant force in the sector leaving MySpace in the dust. [Geek]

MYSPACE GETS A MAKEOVER

Myspace recently revealed a new logo, My[____], but the News Corp. owned social networking site didn't stop there.  They have launched a redesign of the aging site.  The new design features a new homepage and a renewed focus as an entertainment portal.  [Engadget]

NEW MYSPACE LOGO COMING

MySpace is trying to generate some buzz and excitement around its aging product.  They introduced a new logo at the Warm Gun design conference recently and the crowds reaction was silence.  The new logo is the word my followed by a space.

The space won't remain blank however. It will be filled with user generated art as seen in the video from the Warm Gun conference.  MySpace VP of User Experience Mike Macadaan explains:

MySpace is a platform for people to be whatever they want, so we’ve decided to give them the space to do it.


What are your thoughts on the new logo?  Is anyone still using MySpace? [Geek]

JUDGE RULES 'PRIVATE' FACEBOOK DATA CAN BE USED AS EVIDENCE

In a ruling on a  personal injury case New York Justice Jeffery Spinner has ruled that data marked as private on social networks like Facebook and MySpace can be used as evidence in court.

The case was brought by the plaintiff against a chair company.  The chair company wanted access to her private pictures and wall postings.  Justice Spinner agreed that her public postings suggested a "reasonable likelihood" that her private stuff would contain evidence material to the trial.

Conversely, a judge in California ruled the exact opposite and kept the private information out of the court. [Engadget]