Murdoch Will Not Sell Myspace, He Will Not Buy Twitter July 9, 2009Posted by David W. King in Uncategorized.
Tags: Facebook, Murdoch, Myspace, Twitter
According to Rupert Murdoch, News Corp media’s chief executive, he is not interested in buying popular micro-blogging site Twitter, nor will he sell his struggling MySpace.
News Corp bought MySpace in 2005 for $580 million when the social networking service was nearing the height of its popularity, particularly among younger Internet users. Since then, it has has been surpassed by rivals Facebook and Twitter. In a bid to cut costs, MySpace has laid off more than 400 workers, or 30 percent of its staff, in the United States. It also has laid off over 66% of its workforce abroad. News Corp also recently ousted MySpace co-founder and CEO Chris DeWolfe and installed its own management team.
Murdoch expressed confidence in MySpace and criticized Facebook.
“Facebook is like a directory,” he said. “How they make money is another matter.”
As for why he why he is not interested in Twitter is because it would be a tough investment to justify. Twitter has not yet come up with a sustainable way to make money.