News Corp axe to fall on MySpace

News Corporation is expected to announce large scale cuts to the London office of the increasingly beleaguered MySpace, part of the Fox Interactive Media division, at 5pm tomorrow (11 January).

MySpace: News Corporation is expected to announce large scale cuts
MySpace: News Corporation is expected to announce large scale cuts

It is understood that following an announcement by chief executive Mike Jones regarding the future of the social network and music portal's international offices, the subject of much speculation over recent weeks, the London office will be left with just a skeleton staff.

Earlier today it emerged that Fox Interactive Media UK vice president of commercial Simon Daglish was to join ITV as director of multiplatform and partnerships and following his departure a spokesman for MySpace declined to comment on whether Daglish will be replaced.

It is believed that News Corp’s profitable gaming, distribution and technology company IGN, also housed under the Fox Interactive Media umbrella, will not be affected by the cuts and will continue to run a UK operation.

Sources close to Fox Interactive suggested that a possible management buyout, which had been mooted, has now been ruled out and that News Corp is still determined to offload the business.

Today it emerged that MySpace China cut around two thirds of its staff in December and that its Chinese chief executive has left the business.

Speaking after News Corp’s results in November 2010 Chase Carey, president of News Corp, said it was clear that MySpace "is a problem".

Quarterly losses in News Corporation's "other" segment, which includes the Digital Media Group, increased by 23.8% year on year.

Carey’s comments followed an October re-launch of MySpace in a shift away from social networking in attempt to play to its relative strengths by encouraging users to share and recommend music, film and TV programmes.

News Corp bought MySpace in 2005 in a $580m deal. Its popularity peaked in 2007 but it has since suffered from the rise of other networks such as Facebook and Twitter.

In July, according to a report on TechCrunch, monthly visits to MySpace UK were down from a peak of 10 million at the start of the year to around five million at the end of June.

MySpace declined to comment.

Have your say...

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Media Week Jobs
Search for more media jobs

Latest

Omnicom reports 7% rise in pre-tax profit in Q2

Omnicom reports 7% rise in pre-tax profit in Q2

Omnicom Group, home to BBDO, DDB Worldwide and Omnicom Media Group, has reported a 7 per cent rise in pre-tax profits to $514.7 million for the second quarter, on the back of recovering ad markets and strong organic growth.

Share
Bloomberg appoints Matt Teeman as commercial director EMEA

Bloomberg appoints Matt Teeman as commercial director EMEA

Bloomberg Media has appointed former DMG Media and BBC Magazines leader Matt Teeman as its commercial director in Europe, Media East and Africa.

Share
CBS Outdoor acquires Van Wagner in $690m deal

CBS Outdoor acquires Van Wagner in $690m deal

Van Wagner, the outsize US poster company, has sold its billboard business to CBS Outdoor in a $690 million (£404 million) deal.

Share

Get news by email