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Rupert Murdoch’s News Corporation announced yesterday that their social networking site, MySpace, will not hit its annual revenue target of $1 billion, falling short by some 10%.
Revenue in the third quarter fell from $233 million in the preceding 3 months to $210 million.
As discussed in this blog previously, there is certainly a place for marketing in the social networking sites but are they really the best place to find buyers desperate to buy your product or service?
Will Murdoch offload MySpace if it’s not the cash cow it first seemed? Now, who’s got money to burn?
“Phone call, Mr. Gates..”
The news hasn’t got any better for MySpace since. In our post MySpace Announce Job Cuts Amidst Slump in Market Share we look at how the company has continued to haemorrhage money a year later; becoming part of a wider online issue for News Corp. Whilst visit figures remain decent, Facebook’s dominance is clearly impacting on their financial stability.