Sources tell All Things D
that Myspace is mulling over taking a hatchet to its
1,100 staff count by half now that its a lean-mean entertainment machine. "While the decision of what cuts to make to its employee base have not been made yet, nearly the entire Myspace staff was
given the last week of December off from work to save money," reports All Things D.
This is traditionally the type of bad news companies like to leak out right before a big holiday
weekend (and this is one of the sleepiest such times of the year). And the trail is not too difficult to follow on this one. Myspace owner News Corp also owns Dow Jones which, in turn, publishes All
Things D (which the blog disclosed).
The story also suggests that the only route to saving MySpace is a sale of the site. "One juicy rumor that has been going around suggests Facebook
gamemaker Zynga as a potential acquirer of Myspace," says D.
Top-level management shifting could either help or hinder this sale, depending on your point of view. "The company
recently faced trouble at the top. It hired ex-Facebook COO Owen Van Natta as CEO in April 2009 but had him step down just ten months later," writes VentureBeat
. Van Natta is now EVP at Zynga.
According to All Things Dig, News Corp's digital media veep Jack Kennedy
has been tasked with exploring the option of a sell-off. Of the likelihood of a possible sale, Silicon Alley Insider zings
, "Funny that it wasn't a year ago that we reported News Corp was
looking to dump MySpace, and PR people called to scream our ear off about it."
Myspace's morass caused SearchEngineLand to ponder this what-if
: "What if Google had bought MySpace instead of News Corp?
Google is currently struggling to define/execute a social strategy to better compete with the perceived rising threat of Facebook." There's still time, posits the blog, but concedes a Google-Myspace
tie-up is unlikely at this juncture. But still, what if
Read the whole story at All Things D et al »