NewsCorp Still Open to MySpace Talks

09 May 2008

NEW YORK: The future of social networking website MySpace, part of the News Corporation empire, is off the agenda for the time being, following the collapse of negotiations between Yahoo and Microsoft.  

NewsCorp had been in talks with both parties about an alternative deal centring on its own web interests. Third fiscal quarter figures show the media conglomerate's online division is expected to miss its 80% growth target by "about 10%" – resulting in annual revenues below $1 billion (€651m; £510m).

However, the door will be open to further discussions about MySpace. Company president Peter Chernin said NewCorp would take part in "any strategic conversation that does make sense".

The company reports Q3 profit tripled on a $1.67bn gain from the sale of its stake in US satellite provider DirecTVGroup and from advertising sales.

Net income rose to $2.69bn, from $871 million a year earlier. Sales increased 16% to $8.75bn in the January to March period, beating analysts' expectations.

Data sourced from The Times (UK); additional content by WARC staff