Breaking: Tom and his friends may close their doors. The End of Myspace may be imminent?

Myspace, often times the site credited with starting the social media craze, may be closing it’s doors. According to several reliable reports a Fox Executive yesterday said that Myspace’s current losses are “Neither acceptable or sustainable”

Myspace started in August 2003 when three friends working for e-universe saw the potential in friendster and essentially thought friendster was “doing it wrong”. The most notable of the three friends was starting Myspace President, Tom Anderson, Tom became a staple in the Myspace experience because everyone with an account automatically had 1 friend in Tom.

Although none of Myspace’s earlier financials were made public, in 2005 Fox’s parent company News Corp, purchased¬†Myspace parent E-Universe/Intermix media for a reported $580 million.¬† Allegedly $327 million of that was directly attributed to Myspace.

Many people contribute the downfall in popularity of Myspace to Facebook opening up it’s doors to anyone over 13. Others feel that myspace had a friendly feel which started to lack after their purchase by a media giant.

Regardless of the success Newscorp was expecting, this last quarter Myspace increased their losses by 30% to $156 million. Chase Carey, News Corp’s president, recently sat in for CEO Rupert Murdoch on their last earnings call. In Murdochs absence Carey made sure everyone knew that Myspace’s downhill trend in traffic was something he graded in quarters and not in years.

Newscorp would not give an exact timeline for Myspace to shape up or shut down however noting it’s recent relaunch it looks like Myspace is on it’s last legs.

Source: The Guardian UK

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