Wednesday, June 29, 2011

News Corp finally sells MySpace

News Corporation has sold its ailing social networking site MySpace to online advertising firm Specific Media.

News Corp paid $580m (�361m) for MySpace in 2005, but users and advertisers left the site for rival social sites like Facebook and Twitter.

The sale terms were not disclosed, but there were unconfirmed reports that price paid was as low as $35m.

Specific Media said: "We look forward to combining our platforms to drive the next generation of digital innovation."

Specific Media was founded in 1999 by three brothers - Tim, Chris and Russell Vanderhook - and is based in Irvine, California.

MySpace was a leading social networking site when it was bought by Rupert Murdoch's News Corp.

But the business was eclipsed by rivals, and despite attempts to revive MySpace's fortunes the site has been a financial millstone.

News Corp's chief operating officer Chase Carey said in November that the losses at MySpace were "unsustainable".

Although News Corp does not publish specific results for Myspace in its accounts, the "other" segment, which includes the social network, reported a second quarter operating loss of $156m - $31m worse than a year earlier.

The Reuters news agency cited a News Corp-owned blogging site as reporting that MySpace was sold for $35m.



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Google unveils new Facebook rival

Online search giant Google has launched a new social networking website in its latest attempt to take on Facebook, which now claims more than 500m users.

Google+ allows individuals to share photos, messages and comments but also integrates the company's maps and images into the service.

It also aims to help users easily organise contacts within groups.

But some analysts say Google has simply reproduced features of Facebook while adding a video chat function.

Google, which handles roughly two out of every three internet searches in the US, has taken several stabs at Facebook in recent years.

But its previous efforts ended in failure, with both Google Wave and Google Buzz proving unpopular with users.

New functions

The company is now boasting that four features in Google+ could help make the company a permanent player in social networking:

  • Circles - a functionality that allows individuals to place friends into groups, allowing users to share different forms of content with targeted clusters of friends
  • Hangouts - live multi-user video conferencing that permits friends to drop in and out of live group conversations
  • Huddle - group instant messaging
  • Sparks - a feature that connects individuals on the network to others with common interests.

The current version of Google+ has only been released to a small number of users, but the company has said it soon hopes to make the social network available to the millions of individuals that use its services each day.

"Online sharing needs a serious re-think, so it's time we got started," Vic Gundotra, senior vice president of engineering at Google, said in a press release.

"Other social networking tools make selective sharing within small groups difficult," she added, taking what appears to be a jab at Facebook's recent grouping function.

But some analysts have said Google could have a difficult time converting Facebook devotees to their new social network.

"People have their social circles on Facebook - asking them to create another social circle is challenging," Debra Aho Williamson, principal analyst with research firm eMarketer, told the Associated Press news agency.

"The whole idea of a Google social network... they've been throwing stuff against the wall for several years and so forth nothing has stuck," she added.

In April, Google reached an out-of-court settlement with a US policy group over its rollout out Google Buzz, a previous social effort.

The legal action claimed Google deceived users and violated its own privacy policy by automatically enrolling all Gmail users in its Buzz social network without seeking prior permission.



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