News Corp.'s COO may be getting frustrated with the financial performance of MySpace - so much so that he admitted Monday at the Reuters Global Media Summit that he is open to selling or partnering with another company, paidContent reported. In fact, revamping MySpace could be the first step towards successfully selling the social networking site, Reuters pointed out.
"There are opportunities here to do 20 things (with MySpace) but that doesn't mean you're going to do any of the 20. If there's something there that makes sense you ought to think about it," said COO Chase Carey, according to Reuters. However, merging MySpace with another company before revamping it could be difficult, and "would have undervalued it against what we think it could be."
News Corp. COO Chase Carey: Photo, Getty Images via CBSNews.com
Less than a month ago, Carey said in an earnings call that the social networking site's losses were "not acceptable or sustainable" and that the company must "make real headway in the coming quarters to get this business to a sustainable level," according to Wall Street Journal Blogs.
In October, MySpace had 58.1 million unique visitors, down 9.3 percent from October 2009, comScore figures show. Meanwhile, ad spending on the site is forecast to decrease 37 percent this year, to US$347 million, eMarketer reported.
News Corp. bought MySpace for $580 million in 2005, expecting to dominate the social networking field. However, Facebook's popularity started growing, and the site now attracts twice as many users as MySpace monthly, CBSNews.com noted.