Posted by: jhamon | June 17, 2009

MySpace to News Corp: “O, You Mean We Have To Make Money?”

I guess it’s no longer enough to be Cool or The Next Big Thing in WebLand, especially with this guy breathing down your neck.  MySpace has announced layoffs of 30% of its workforce and a new focus on – you guessed it – profitability.  From the press release:

“Simply put, our staffing levels were bloated and hindered our ability to be an efficient and nimble team-oriented company,” said MySpace Chief Executive Officer Owen Van Natta. “I understand that these changes are painful for many. They are also necessary for the long-term health and culture of MySpace.  Our intent is to return to an environment of innovation that is centered on our user and our product.”
“MySpace grew too big considering the realities of today’s marketplace,” said Jonathan Miller, News Corporation’s CEO of Digital Media and Chief Digital Officer. “I believe this restructuring will help MySpace operate much more effectively both structurally and financially moving forward. I am confident in MySpace’s next phase under the leadership of Owen and his team.”

Silicon Alley Insider has previously reported on just how weak MySpace really is.  I have previously blogged about the Austrian Economists’ notion of malinvestment.  It’s nothing that a good recession can’t cure.  Maybe Web 3.0 is “monetization.”


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