News Corp. puts Myspace on notice

Rupert Murdoch's News Corp.put Myspace on notice on Wednesday, saying the losses at the ailing social network were unsustainable and there needs to be improvement in the next few quarters.


 


 

"We've been clear that Myspace is a problem," News Corp. president and chief operating officer Chase Carey said during a conference call with analysts after the media and entertainment giant released its quarterly earnings.

"The current losses are not acceptable or sustainable," Carey said. "Our current management did not create these losses but they know we have to address them."

The News Corp. executive said last week's redesign of Myspace "has been generally well received by the opinionmakers in the business but we recognize the critical issue is building interest with consumers.

"We also recognize the challenges we face in doing so," he said.

News Corp. bought Myspace for 580 million dollars in 2005 but it has been eclipsed by Facebook in recent years, which has grown to more than 500 million members while Myspace's numbers have dwindled.

With tens of millions of users, Carey said Myspace still "has the potential to be an exciting business for us" but "we need to make real headway in the coming quarters to get this business to a sustainable level."

"Our traffic numbers are still not going in the right direction and we have to stabilize that and have a predictable path forward, the right cost structure and a clear path to be a profitable business," he said.

Asked how much time News Corp. would give Myspace to show improvement, Carey declined to give a deadline.

"These are fluid businesses... I think it is something we look to judge in quarters not in years," he said.

Aside from Myspace, rebounding advertising helped News Corp. report a solid quarter with net profit growing 36 percent to 775 million dollars, beating the expectations of Wall Street analysts.

Revenue rose to 7.4 billion dollars in the first quarter of its 2011 fiscal year from 7.2 billion dollars a year ago.

"Our global cable network programming business continues to lead News Corporation's financial and operational momentum," Murdoch, News Corp.'s chairman and chief executive, said in a statement.

"With continued subscriber growth in new and established channels throughout the world, and a global advertising recovery, our domestic and international channels now account for 25 percent of our revenues," he added.

"Our publishing segment also showed expanded operating income, benefiting from greater advertising revenue and operational efficiencies at our newspapers."

News Corp.'s publishing empire includes The Wall Street Journal, New York Post, Britain's The Times and The Sunday Times and newspapers in Australia.

Other News Corp. properties include the Fox Broadcasting Co., 20th Century Fox movie studio, Dow Jones and Sky Italia.

Earlier Wednesday, News Corp. notified European Commission competition regulators of its takeover plans for British pay-TV giant BSkyB.

News Corp. shares were up 3.10 percent to 15.30 dollars in after-hours trading.

Life and Style
ebookNow available in paperback
ebooks
ebookA delicious collection of 50 meaty main courses
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Gadgets & Tech

    Recruitment Genius: Project Coordinator

    £28000 - £30000 per annum: Recruitment Genius: A Project Coordinator is requir...

    Recruitment Genius: IT Support Technician - 2nd / 3rd Line

    £26000 - £32000 per annum: Recruitment Genius: An IT Support Technician is req...

    Recruitment Genius: 2nd Line IT Support Engineer

    £18000 - £21000 per annum: Recruitment Genius: This is an opportunity to join ...

    SThree: Associate Recruitment Consultant - Global Leader - FTSE 250

    £18000 - £23000 per annum + competitive: SThree: As an Associate Recruitment C...

    Day In a Page

    John Palmer: 'Goldfinger' of British crime was murdered, say police

    Murder of the Brink’s-MAT mastermind

    'Goldfinger' of British crime's life ended in a blaze of bullets, say police
    Bodyworlds museum: Dr Gunther von Hagens has battled legal threats, Parkinson's disease, and the threat of bankruptcy

    Dying dream of Doctor Death

    Dr Gunther von Hagens has battled legal threats, Parkinson's disease, and the threat of bankruptcy
    UK heatwave: Temperature reaches 39.8 degrees on Central Line - the sweatiest place in London

    39.8 degrees recorded on Tube

    There's hot (London) and too damn hot (the Underground). Simon Usborne braved the Central line to discover what its passengers suffer
    Jessie Cave interview: The Harry Potter star has published a feminist collection of cartoons

    Jessie Cave's feminist cartoons

    The Harry Potter star tells Alice Jones how a one-night stand changed her life
    10 best barbecue books

    Fire up the barbie: 10 best barbecue books

    We've got Bibles to get you grilling and smoking like a true south American pro
    Seifeddine Rezgui: What motivated a shy student to kill 38 holidaymakers in Tunisia?

    Making of a killer

    What motivated a shy student to kill 38 holidaymakers in Tunisia?
    UK Heatwave: Temperatures on the tube are going to exceed the legal limit for transporting cattle

    Just when you thought your commute couldn't get any worse...

    Heatwave will see temperatures on the Tube exceed legal limit for transporting cattle
    Exclusive - The Real Stories of Migrant Britain: Swapping Bucharest for London

    The Real Stories of Migrant Britain

    Meet the man who swapped Romania for the UK in a bid to provide for his family, only to discover that the home he left behind wasn't quite what it seemed
    Cheaper energy on the way, but it's not all sunshine and rainbows

    Cheaper energy on the way, but it's not all sunshine and rainbows

    Solar power will help bring down electricity prices over the next five years, according to a new report. But it’s cheap imports of ‘dirty power’ that will lower them the most
    Katy Perry prevented from buying California convent for $14.5m after nuns sell to local businesswoman instead

    No grace of God for Katy Perry as sisters act to stop her buying convent

    Archdiocese sues nuns who turned down star’s $14.5m because they don’t approve of her
    Ajmer: The ancient Indian metropolis chosen to be a 'smart city' where residents would just be happy to have power and running water

    Residents just want water and power in a city chosen to be a ‘smart’ metropolis

    The Indian Government has launched an ambitious plan to transform 100 of its crumbling cities
    Michael Fassbender in 'Macbeth': The Scottish play on film, from Welles to Cheggers

    Something wicked?

    Films of Macbeth don’t always end well - just ask Orson Welles... and Keith Chegwin
    10 best sun creams for body

    10 best sun creams for body

    Make sure you’re protected from head to toe in the heatwave
    Wimbledon 2015: Nick Bollettieri - Milos Raonic has ability to get to the top but he must learn to handle pressure in big games

    Nick Bollettieri's Wimbledon files

    Milos Raonic has ability to get to the top but he must learn to handle pressure in big games
    Women's World Cup 2015: How England's semi-final success could do wonders for both sexes

    There is more than a shiny trophy to be won by England’s World Cup women

    The success of the decidedly non-famous females wearing the Three Lions could do wonders for a ‘man’s game’ riddled with cynicism and greed