When a corporate giant officially announces the sale of its one of the major profit-making projects, everyone knows that it is a part of a pure business.
This one has come as no surprise. Clearing the fog of prolonged incertitude, News Corp has finally annunciated its decision to sell off the social networking site, MySpace.
The COO, Chase Carey, claimed during a media briefing that the corporate desperately felt the networking site needs a “new owner”.
Carey added in his statement that although MySpace has been very well received by the market and has many commendable achievements under its belt, it is the high time when a new owner is needed to allow MySpace to reach its full potential.
One may wonder what made the company to give-away something that marked for a spectacular boost in net earnings by no less than twice of the original.
Reportedly, the profit shot up to $642 million as compared to $254 million, the previous year. It was strongly speculated that the spur was largely contributed by the revenues levied on advertisements at Fox Television stations and cable networks.
Mainly focused on promoting hassle-free social networking, MySpace was purchased in 2005 for $580 million by Rupert Murdoch creator of a media empire that includes 20th Century Fox and the Fox television stations, beating fellow bidders, which included Viacom.
MySpace, which has a stiff competition with Facebook, has more than 40 billion page views a month. Reportedly, Google paid $900 million to be search provider for MySpace in 2006.
As per the conjectures of the market analysts, although, the site made profits for the corporate, the main reason for its hawking is credited to its decreasing popularity, especially after Facebook and Twitter hit the markets.
To regain the likeness among masses, News Corp. tried its hands on refurnishing of the social networking portal, but all was in vain. When the Facebook village had 151 million citizens, MySpace only comprised of 60 million.
The company re-launched the site as more of a media company offering an entertainment-ride instead of a networking site, but without success.
In the beginning of 2011, the bosses at MySpace asked many of its employees to leave the jobs, in view of cutting the overhead expenses. The social portal was re-structured and deals with Google were reformed.
But despite the hell-bent efforts from the company, the site never raised to its initial levels of popularity.
With so much already said and done in order to make MySpace a hit, it would be interesting to see who comes out as a potential bidder.
But one thing remains for sure; the would-be owners must be willing to roll-up their sleeves to reincarnate the social networking stager in such a way that appeals to users this time. After all, with momentous technological mutations, it is not every day that you get second chances.