Social networking site, MySpace, plans to pull out more staff as such report was brought up by the Wall Street Journal on Friday. This report came from the Wall Street Journal in connection with the plan of selling the site.
MySpace founder Chris DeWolfe along with the News Corporation already made negotiations with potential buyers such as the Tencent Holding Ltd. – a Chinese Internet company, online music video network Vevo as well as other private equity firms.
As of this moment, Tencent and Vevo are still silent over the issue.
The MySpace deal would involve the merging of MySpace to another site in exchange of an agreed amount and equity between the merged companies. The Wall Street Journal was able to reach out for such strategic move.
Based on its monthly unique visitors, reports have been published that the main competitor of MySpace is Facebook. In June 2006, MySpace has been the most popular social networking site in US but reports published recently reveals that MySpace is gradually fading as Facebook surp(–foul word(s) removed–)ed its online popularity.
MySpace heads for its second reduction of staff this year. It was in January when the company pulled out 500 employees so as to keep the social networking site steady. Reports said that MySpace has shed about 1,200 jobs for the past two years.
MySpace attempts to transform itself into a hub for music, entertainment and games however the traffic of the site is still dropping. In fact, its traffic declined at 44% in the previous year.
A section from the News Corp. included a report that operating loss of MySpace is $156 million for the quarter that ended in December 31. Such declining result is because of the weak performance of the fading social networking site.