Friday, November 06, 2009

FT.com / Media - News Corp says MySpace Google deal at risk

Difficult times for MySpace

MySpace, once the centerpiece of Rupert Murdoch’s digital strategy, has fallen “significantly” short of expectations and is jeopardising a critical $900m internet search agreement with Google.

Weaker traffic means the News Corp division is now expected to receive about $100m less from a deal that had underpinned investors’ confidence in the MySpace acquisition, executives revealed.

“We’re still losing traffic,” said Chase Carey, chief operating officer of News Corp. “It’s a business in transition.”

FT.com / Media - News Corp says MySpace Google deal at risk

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