MySpace Future Uncertain, According to News Corp Executives

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Since being overtaken by Facebook in terms of popularity and profitability, MySpace has tried to reinvent itself several times, with its most recent incarnation as a social entertainment portal. However, recent developments suggest that parent company, News Corp, might give MySpace the boot if it doesn’t shape up soon.

Speaking at a conference call with media and analysts, News Corp president and COO Chase Carey said that the losses that MySpace has been sustaining since its acquisition is not acceptable. While the recent relaunch and redesign has been viewed as positive, MySpace still has to prove itself in the next few quarters in order for its parent company to consider continuing with the business.

News Corp acquired MySpace for $580 million in 2005, and saw rapid growth for a short time. News Corp had even considered merging it with Yahoo, but that acquisition deal fell through. The social network has since been overtaken by Facebook, and now business looks bleak.

Still, with tens of millions of users, MySpace might still have the potential to get back on track. Given the dynamic nature of such a business, though, News Corp wants to see a turnaround in performance, or MySpace might get the ax. News Corp declined to comment on the timeline it has given MySpace, but given the recent relaunch, it’s probably going to be sooner than later.